Apple is recognizing its significant expenditures on television shows and movies that many consumers might not even be aware of.
According to a report by Bloomberg, the tech company is reevaluating its strategy for Apple TV+ after investing around $20 billion in original content. Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. The studio heads have indicated a desire to move away from Apple TV+’s image as the highest spender in the streaming industry.
Apple has made substantial investments, including $250 million for the miniseries “Masters of Air,” which saw a lukewarm reception. The company has also spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its heavy spending, Apple TV+ accounts for just 0.2% of television viewership in the United States, receiving fewer views in a month than Netflix achieves in just 24 hours. The service has also faced challenges in growing its subscriber base.
While Apple TV+’s struggles do not appear to alarm the company—since streaming is not central to its business model—it seems that the era of unlimited spending is coming to an end. This shift is hinted at by the company’s reluctance to renew shows for a third season, as reported by Bloomberg.
Currently, Apple TV+ is the last major streaming platform without an ad-supported tier. However, this may change soon, as the company recently hired Joseph Cady, an advertising executive from NBCUniversal.