Apple is aware that it has been overspending on TV shows and movies that are often little known to the public. The company is reportedly considering a new strategy for Apple TV+ after investing around $20 billion in original content, according to a report from Bloomberg.
Bloomberg noted that Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. The studio leaders are said to be indicating that the streaming service aims to move away from its image as the industry’s largest spender.
Apple’s substantial investments include $250 million allocated to the miniseries “Masters of Air,” which debuted this year without much impact. The company has also invested over $500 million in films directed by renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive spending, Apple TV+ has captured just 0.2% of TV viewership in the United States, with its monthly views falling short of Netflix’s 24-hour totals. The platform has also faced challenges in growing its subscriber base.
While Apple TV+’s struggles have not been a significant concern for the tech giant— as streaming is not its primary business— the era of unrestricted spending appears to be coming to an end. This shift has already been reflected in the company’s hesitance to renew shows for third seasons, according to Bloomberg data.
Apple TV+ remains the only major streaming service without an ad-supported tier, a situation that is likely to change following the appointment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.