Apple is recognizing that it has been overspending on original TV shows and movies that many viewers may not see or even be aware of. According to a Bloomberg report, the company is considering a new strategy for its Apple TV+ service after investing around $20 billion in original content.
Apple executive Eddy Cue has reportedly met with the heads of Apple TV+’s production studios, Zack Van Amburg and Jamie Erlicht, to discuss budget constraints. There are indications that the team wants to move away from the platform’s image as the biggest spender in the industry.
The tech giant has made significant financial investments, such as the $250 million spent on the miniseries “Masters of Air,” which premiered this year but garnered minimal attention. Additionally, Apple has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its heavy investments, Apple TV+ holds only 0.2% of the television viewership in the United States, lagging behind competitors like Netflix, which accumulates more views in a single day than Apple does in an entire month. The platform has also faced challenges in boosting its subscriber numbers.
While Apple TV+’s difficulties have not raised alarms within the broader company, as streaming is not a primary focus for Apple, the era of unrestricted spending appears to be coming to an end. This is already reflected in its increasing reluctance to renew shows for a third season.
Notably, Apple TV+ remains the only major streaming service without an ad-supported tier, a situation likely to change now that the company has brought on Joseph Cady, a former ad executive from NBCUniversal, earlier this year.