Apple is aware that it has been overspending on television and movie productions that many viewers may not recognize or even hear about. The company is reportedly investigating a new strategy for its streaming service, Apple TV+, after investing an eye-watering $20 billion in original content, as per Bloomberg’s report.
According to the outlet, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about scaling back budgets. Van Amburg and Erlicht have been conveying to staff that the platform is eager to shed its image as the biggest spender in the industry.
Apple has invested enormous amounts on various projects, including $250 million for the miniseries “Masters of Air,” which premiered this year but failed to gain significant attention.
Furthermore, the company has spent over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn, as reported by Bloomberg.
Despite this vast financial commitment, Apple TV+ holds just 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix does in just 24 hours. The streaming service has also faced challenges in boosting its subscriber numbers.
Although Apple TV+’s issues do not seem to deeply concern the tech giant—since streaming is not a primary focus of its business—it appears that the era of unlimited spending may be coming to an end. The company has already indicated a more cautious approach by hesitating to renew shows for third seasons, according to Bloomberg data.
Notably, Apple TV+ remains the only major streaming service without an advertising tier. This could soon change, as the company recently hired Joseph Cady, a former advertising executive from NBCUniversal, earlier this year.