Apple is aware that it is investing excessively in television shows and films that have largely gone unnoticed by audiences. The tech giant is reportedly reevaluating its strategy for Apple TV+ following its staggering expenditure of approximately $20 billion on original content, according to Bloomberg.
Apple’s executive Eddy Cue has been in discussions with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, about reducing these budgets. The studio heads have indicated a desire for the streaming service to distance itself from the perception of being the biggest spender in the industry.
The company has made significant financial commitments, such as $250 million for the miniseries “Masters of Air,” which debuted this year but failed to gain substantial traction. Additionally, Apple has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this immense spending, Apple TV+ accounts for only 0.2% of television viewership in the United States, with its monthly views being dwarfed by Netflix’s 24-hour view count. The platform has also had difficulty growing its subscriber base.
While Apple does not seem overly concerned about these challenges—given that streaming is not central to its business model—there are signs that its unlimited spending phase may be coming to an end. This is reflected in its hesitance to renew shows for third seasons, as reported in Bloomberg data.
Currently, Apple TV+ remains the only major streaming service without an advertising tier, but this is expected to change following the company’s recruitment of Joseph Cady, a former NBCUniversal advertising executive, earlier this year.