Apple is reportedly aware that its spending on TV shows and movies has been excessive, investing around $20 billion in original content, much of which remains unknown to viewers.
As reported by Bloomberg, Apple executive Eddy Cue has been holding discussions with studio heads Zack Van Amburg and Jamie Erlicht regarding a new strategy for Apple TV+. The goal is to tighten budgets and alter the platform’s image as the largest spender in the industry.
Apple has made significant financial commitments, such as $250 million for the miniseries “Masters of Air,” which launched this year but garnered little interest. Additionally, the company has spent over $500 million on films directed by well-known filmmakers including Martin Scorsese and Ridley Scott.
Despite the heavy investment, Apple TV+ only captures 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix does in a single day. The service has also faced challenges in growing its subscriber base.
Although Apple TV+’s struggles do not appear to be a major concern for the tech giant, as streaming isn’t central to its business model, it seems poised to curb its lavish spending. Signs of this shift can be seen in its hesitance to renew shows for a third season.
Furthermore, Apple TV+ remains the last major streaming service without an advertising tier. This may soon change following the hiring of Joseph Cady, a former NBCUniversal ad executive, earlier this year.