Apple is reportedly aware that it is investing excessively in TV shows and movies that many viewers may not be familiar with. The tech giant is reassessing its approach to Apple TV+ after spending an astonishing $20 billion on original content, according to Bloomberg.
Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about controlling production budgets. The pair have indicated a desire to move away from Apple TV+ being perceived as the industry’s largest spender.
The company’s high-profile spending includes $250 million for the miniseries “Masters of Air,” which premiered this year but did not achieve significant viewership. Additionally, Apple has invested over $500 million on films by acclaimed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these financial commitments, Apple TV+ commands only 0.2% of television viewership in the United States, lagging behind Netflix, which can acquire more views in just 24 hours than Apple TV+ receives in an entire month. The platform has faced challenges in boosting its subscriber count as well.
Although Apple TV+ is not central to the company’s overall business strategy, the era of unrestricted spending appears to be coming to an end. This shift has already manifested in a reluctance to renew shows for third seasons, as indicated by Bloomberg’s findings.
Apple TV+ remains the only major streaming service without an advertising tier, but this is expected to change soon, especially following the recent hiring of ad executive Joseph Cady from NBCUniversal.