Apple is reportedly aware of its excessive spending on original TV shows and movies that many viewers may not recognize or have never heard of. The company is considering a new strategy for its streaming service, Apple TV+, after investing around $20 billion on original content, according to Bloomberg.
Apple executive Eddy Cue has been meeting with Apple TV+’s studio heads, Zack Van Amburg and Jamie Erlicht, to discuss reducing budgets. Sources indicate that Van Amburg and Erlicht are eager to change the service’s image as the largest spender in the industry.
The company’s substantial investments include $250 million for the miniseries “Masters of Air,” which received little attention upon release this year. Additionally, Apple has spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these significant expenditures, Apple TV+ holds just 0.2% of television viewership in the United States, with monthly views falling far short of Netflix’s figures in a single day. The service has also faced challenges in boosting its subscriber base.
While Apple TV+’s struggles do not seem to be a major concern for the tech giant, since streaming is not central to its business model, it appears that the era of unrestricted spending may be coming to an end. This shift is reflected in the company’s hesitancy to renew shows for third seasons, as noted by Bloomberg data.
Notably, Apple TV+ is the last major streaming platform that does not offer an ad-supported tier, a situation that is likely to change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.