Apple is aware that it has invested excessively in television shows and films that many viewers may not recognize. According to a Bloomberg report, the tech giant is reconsidering its strategy for Apple TV+ after spending an astounding $20 billion on original content.
The report indicates that Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about controlling production budgets. The studio executives are reportedly aiming to shift the platform’s image away from being the largest spender in the industry.
Apple has made significant financial commitments for various projects, including $250 million for the miniseries “Masters of Air,” which premiered this year but garnered minimal interest. Furthermore, the company has invested over $500 million on films from notable directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its significant expenditure, Apple TV+ captures only 0.2% of television viewership in the US, attracting fewer viewers in a month than what Netflix earns in just one day. The service has also faced challenges in growing its subscriber base.
Although Apple TV+ has encountered these issues, the broader tech company does not seem overly concerned since streaming is not its primary focus. However, signs indicate that the era of limitless spending is coming to an end, as evidenced by its hesitance to renew shows for third seasons, according to Bloomberg data.
Notably, Apple TV+ remains the last major streaming platform without an advertising tier. This situation is expected to evolve following the company’s recent hire of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.