Apple is aware that it has been excessively spending on original TV shows and movies that many viewers may not recognize.
The company is currently considering a new strategy for Apple TV+ after investing an estimated $20 billion in original content, according to a report from Bloomberg. Apple executive Eddy Cue has been meeting with studio heads Zack Van Amburg and Jamie Erlicht to discuss budget reductions. The duo has reportedly communicated that the platform aims to move away from its image as the highest spender in the industry.
Apple has invested considerable amounts in various projects, including $250 million for the miniseries “Masters of Air,” which was released this year but received minimal attention. Additionally, the company has spent more than $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this monumental investment, Apple TV+ holds only 0.2% of TV viewership in the United States, receiving fewer views in a month than Netflix does in just a single day, and it has faced challenges in growing its subscriber base.
However, the issues with Apple TV+ do not appear to alarm the larger tech company, as streaming is not a primary focus of its business. Still, the era of unrestricted spending seems to be coming to an end, as indicated by the company’s hesitance to renew shows for third seasons, based on Bloomberg’s findings.
Apple TV+ is also unique among major streaming services for not having an advertising tier, a situation that is likely to change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.