Apple is reportedly aware of its excessive spending on original TV shows and movies that largely go unnoticed by audiences.
After investing approximately $20 billion in original content for Apple TV+, the company is now considering a new strategy to better manage costs, according to Bloomberg. Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about the need to reduce budgets and shift away from being seen as the industry’s biggest spender.
Some notable expenditures include $250 million for the miniseries “Masters of Air,” which received minimal attention upon release this year, and over $500 million spent on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these significant investments, Apple TV+ captures only 0.2% of television viewership in the U.S., which translates to far fewer daily views compared to Netflix, which can achieve that in just 24 hours. Additionally, the platform has faced challenges in attracting new subscribers.
Although Apple’s streaming service issues do not seem to be alarming the company—given that streaming is not a primary aspect of its business—the era of unrestricted spending appears to be coming to an end. This is reflected in its hesitance to renew shows for third seasons, as indicated by Bloomberg’s findings.
Apple TV+ remains the only major streaming platform yet to introduce an ad-supported tier, although that may change following the hiring of Joseph Cady, a former NBCUniversal ad executive, earlier this year.