Apple is aware that it has been investing significantly in television shows and movies that many viewers may not recognize or have seen. According to a report from Bloomberg, the company is reevaluating its strategy for Apple TV+ after allocating an astonishing $20 billion on original content.
Apple executive Eddy Cue has been in discussions with the heads of Apple TV+’s studio operations, Zack Van Amburg and Jamie Erlicht, to potentially reduce production budgets. Reports indicate that Van Amburg and Erlicht are communicating a desire to move away from the perception of Apple being the industry’s top spender.
The company has invested considerable amounts in high-profile projects, including $250 million for the miniseries “Masters of Air,” which saw limited success upon its release this year. Furthermore, Apple has spent over $500 million on films directed by notable filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these large expenditures, Apple TV+ holds only a 0.2% share of television viewership in the United States, garnering fewer views in a month than Netflix attracts in a single day. Subscriber growth has also proven challenging for the platform.
Although the situation at Apple TV+ is not causing significant concern for the tech giant—since streaming is not central to its business model—the era of unrestricted spending appears to be coming to an end. This shift is reflected in the company’s reluctance to approve third seasons for various shows.
Currently, Apple TV+ is the only major streaming service without an advertising tier, a situation that may soon change following the hiring of Joseph Cady, a former NBCUniversal ad executive, earlier this year.