Apple is aware that it has been overspending on television shows and movies that many people may not have seen or even heard of.
In light of this, the company is considering a new strategy for its Apple TV+ service after reportedly investing around $20 billion in original content, according to a Bloomberg report.
Apple executive Eddy Cue has been discussing budget constraints with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht. The two have also been communicating internally that the streaming service intends to shake off its image as the industry’s largest spender.
Apple has made substantial investments in productions, including a notable $250 million for the miniseries “Masters of Air,” which premiered this year but failed to gain significant attention. Additionally, the company has invested over $500 million in films from esteemed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this heavy spending, Apple TV+ accounts for just 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix does in a single day. The platform has also faced challenges in growing its subscriber base.
Although Apple TV+ is experiencing these issues, they do not appear to be a major concern for the tech giant, as streaming is not a primary focus of its business. However, the era of unrestrained spending seems to be coming to an end, a shift already indicated by the company’s hesitance to renew certain shows for third seasons, according to Bloomberg data.
Currently, Apple TV+ is the last significant streaming service that does not offer an advertising tier, but this may change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.