Apple is aware of its significant spending on TV shows and movies that are largely unknown to viewers. The company is considering a new strategy for its streaming service, Apple TV+, following reports that it has invested around $20 billion in original content.
According to Bloomberg, Apple executive Eddy Cue has been meeting with studio heads Zack Van Amburg and Jamie Erlicht to discuss budget constraints. The duo has indicated a desire to change the perception of the streaming service as the industry’s biggest spender.
Apple has invested substantial amounts in productions, including $250 million for the miniseries “Masters of Air,” which received little attention upon its release this year. Additionally, the company has spent over $500 million on films from notable directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this hefty investment, Apple TV+ holds only 0.2% of television viewership in the U.S., garnering fewer views in a month than Netflix achieves in just one day, and faces challenges in growing its subscriber base.
While streaming is not a core aspect of Apple’s business, the tech giant appears to be signaling a shift away from its unlimited spending strategy, as reflected in its hesitation to renew series for third seasons. Notably, Apple TV+ is currently the only major streaming platform without an ad-supported tier, a situation that may change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.