Apple recognizes that it has been investing excessively in original television shows and movies that often go unnoticed by viewers.
The company is reportedly considering a new strategy for its streaming service Apple TV+, following substantial expenditures of around $20 billion on content, according to a Bloomberg report.
Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about controlling expenses. Van Amburg and Erlicht have indicated that the platform aims to improve its image as the largest spender in the industry.
Notable expenditures include a staggering $250 million for the miniseries “Masters of Air,” which premiered this year but failed to gain significant attention. Additionally, Apple has invested over $500 million in films directed by renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this heavy investment, Apple TV+ holds just 0.2% of the television viewership in the United States, attracting fewer viewers in a month than Netflix does in a single day. Subscriber growth has also been sluggish.
While Apple’s primary business focus does not revolve around streaming, the company seems poised to curb its lavish spending, as indicated by its hesitance to renew programs for a third season. Furthermore, Apple TV+ remains unique among major streaming services for not offering an advertisement-supported tier, a situation likely to change after the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.