Apple is reportedly aware of its high spending on TV shows and movies that many viewers may not know or see. The company is considering a new strategy for Apple TV+ after investing an astounding $20 billion in original content, according to Bloomberg.
Apple executive Eddy Cue has been in discussions with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, about reducing budgets. Van Amburg and Erlicht have also communicated that the streaming platform aims to change its image as the largest spender in the industry.
The tech giant has invested significant amounts in various projects, including $250 million for the miniseries “Masters of Air,” which debuted this year with minimal success. Additionally, Apple has spent over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these massive expenditures, Apple TV+ holds only 0.2% of TV viewership in the US, and it garners fewer views in a month than Netflix receives in just one day. The platform has also faced challenges in boosting its subscriber numbers.
While Apple TV+’s issues do not seem to be a major concern for the tech company, given that streaming is not a primary focus of its business, the era of limitless spending appears to be coming to an end. Evidence of this shift can be seen in its hesitation to renew shows for third seasons, as indicated by Bloomberg’s findings.
Notably, Apple TV+ is the only major streaming service that does not offer an ad-supported tier, though this may change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.