Apple is recognizing that it is allocating excessive funds towards TV shows and movies that many viewers may not even be aware of.
The company is currently considering a different strategy for Apple TV+ after spending a staggering $20 billion on original content, according to a report by Bloomberg.
The report indicates that Apple executive Eddy Cue has been in discussions with Apple TV+’s studio heads, Zack Van Amburg and Jamie Erlicht, regarding the need to cut back on budgets. Both Van Amburg and Erlicht reportedly want to shift the platform’s image away from being viewed as the industry’s largest spender.
Apple has invested considerable sums in productions, such as the $250 million miniseries “Masters of Air,” which was released this year but garnered minimal interest.
Additionally, the platform has spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn, as noted by Bloomberg.
Despite these vast expenditures, Apple TV+ holds only 0.2% of television viewership in the U.S., receiving fewer views in a month than Netflix does in just one day. The service has also faced challenges in attracting new subscribers.
Although Apple TV+’s struggles have not raised alarms within the tech giant, given that streaming is not a primary focus of its business, it appears that its era of unrestricted spending is nearing an end. This is reflected in the company’s hesitation to renew shows for third seasons, as per Bloomberg’s findings.
Furthermore, Apple TV+ remains the only major streaming service without an advertising tier, a situation that is likely to change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.