Apple is aware that its spending on television shows and films has been excessive, particularly on content that many viewers may not recognize or appreciate.
The tech giant is reportedly considering a new strategy for its streaming service, Apple TV+, after investing approximately $20 billion in original content, as reported by Bloomberg. Executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. The duo has also mentioned that the platform aims to shift away from its image as the largest spender in the industry.
Apple has made significant financial commitments to various productions, including $250 million for the miniseries “Masters of Air,” which was released this year but did not gain much audience traction. Additionally, the company has invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these vast expenditures, Apple TV+ holds only 0.2% of television viewership in the U.S., garnering fewer views in an entire month than Netflix achieves within 24 hours. The platform has also faced challenges in boosting subscriber numbers.
While Apple TV+’s difficulties do not seem to pose a major concern for the overall company—given that streaming is not a core aspect of its business—the era of unchecked spending may be coming to an end. This is evident in its hesitation to renew shows for third seasons, according to Bloomberg.
Notably, Apple TV+ remains the only major streaming service without an advertising tier, a situation that is expected to change following the hiring of advertising executive Joseph Cady from NBCUniversal earlier this year.