Apple is reportedly aware that it is spending excessively on television shows and movies that many viewers may not recognize or have even heard of. The tech company is considering a new strategy for its streaming service, Apple TV+, after investing around $20 billion in original content, according to Bloomberg.
Executives at Apple, including Eddy Cue, have engaged in discussions with studio leaders Zack Van Amburg and Jamie Erlicht about implementing budget cuts. They have indicated that the streaming service aims to move away from its image as the largest spender in the industry.
Apple has invested significant amounts for projects such as the miniseries “Masters of Air,” which cost $250 million and received minimal attention upon its release this year. Additionally, more than $500 million has been allocated for films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this sizable financial commitment, Apple TV+ claims just 0.2% of television viewership in the U.S., with its monthly views falling short of the number Netflix receives in a single day. The platform has also faced challenges in growing its subscriber base.
While Apple does not appear overly concerned about these issues, given that streaming is not central to its business model, the trend of unrestricted spending may soon come to a halt. This is reflected in the company’s reluctance to renew certain shows for third seasons.
Currently, Apple TV+ is the last major streaming service without an advertising tier, although this could change following the appointment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.