Apple is reportedly aware that it has been over-investing in television shows and movies that many viewers may not recognize or be familiar with.
The tech giant is currently facing its first lawsuit related to an E. coli outbreak linked to its Quarter Pounder product. Part of a larger strategy, Apple is exploring new directions for its streaming service, Apple TV+, after spending around $20 billion on original content, as reported by Bloomberg.
Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing production costs. The duo has indicated that the company aims to change its perception as the largest spender in the industry.
Apple’s investments include significant amounts for various projects, such as $250 million for the miniseries “Masters of Air,” which received minimal attention upon release this year. The company has also invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its extensive spending, Apple TV+ holds only 0.2% of television viewership in the United States, attracting fewer views in a month than Netflix garners in just one day. The service has also struggled with subscriber growth.
However, Apple’s streaming challenges have not seemed to concern the company, as streaming is not a primary focus of its business. Still, signs suggest that its days of unrestricted spending may be coming to an end, especially as it has been hesitant to renew shows for third seasons, according to Bloomberg insights.
Notably, Apple TV+ is currently the only major streaming service without an ad-supported tier, a situation likely to change after the company recruited advertising executive Joseph Cady from NBCUniversal earlier this year.