Apple recognizes that it has been overspending on TV shows and movies that are largely unknown to most viewers. The company is now considering a new strategy for its streaming service, Apple TV+, after investing an astonishing $20 billion in original content, according to a Bloomberg report.
Apple executive Eddy Cue has reportedly been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets. The two executives have been communicating a desire for the streaming service to shake off its image as the industry’s largest spender.
The financial outlays have been significant; for instance, Apple spent $250 million on the miniseries “Masters of Air,” which premiered this year with minimal impact. Additionally, over $500 million has been invested in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive expenditure, Apple TV+ commands only 0.2% of TV viewership in the United States, garnering fewer views in a month than Netflix does in just one day. The service has also faced challenges in growing its subscriber base.
Although Apple TV+’s difficulties do not seem to be a major concern for the tech giant, as streaming is not central to its operations, the era of unrestricted spending appears to be coming to an end. Signs of this shift include the company’s reluctance to renew shows for third seasons, as indicated by Bloomberg data.
Notably, Apple TV+ is currently the only major streaming service without an advertising tier, but this may soon change following the hiring of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.