Apple is recognizing that it has been overspending on original TV shows and movies, many of which are not well-known to viewers. The company is reportedly considering a new strategy for its streaming service, Apple TV+, after investing an astonishing $20 billion in original content, as reported by Bloomberg.
Apple executive Eddy Cue has been in discussions with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, about reducing budgets. The duo has also communicated internally that the platform aims to change its image as the highest spender in the industry.
Significant investments include $250 million for the miniseries “Masters of Air,” released this year with minimal impact. Additionally, Apple has allocated over $500 million for films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive spending, Apple TV+ holds a mere 0.2% of television viewership in the United States, garnering fewer views in an entire month than Netflix does in just 24 hours. The service has also faced challenges in boosting its subscriber base.
Although Apple TV+’s issues have not raised major concerns for the broader tech company—given that streaming is not central to its business model—the era of limitless spending appears to be coming to an end. This shift is evident in the company’s hesitancy to renew shows for a third season, according to Bloomberg’s findings.
Notably, Apple TV+ is the only major streaming service without an advertising tier, a status likely to change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.