Apple has acknowledged that it is overspending on original television shows and movies, many of which have gone unnoticed by audiences.
According to Bloomberg, the tech giant is considering a new strategy for its streaming service, Apple TV+, after investing an astonishing $20 billion in original content. Reports indicate that Apple executive Eddy Cue has been engaging with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht to discuss budget reductions. The studio heads have reportedly communicated a desire to move away from being perceived as the industry’s biggest spender.
This year alone, Apple allocated $250 million for the miniseries “Masters of Air,” which did not gain significant traction. Additionally, the company has invested over $500 million in films directed by notable filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial investments, Apple TV+ holds a mere 0.2% share of television viewership in the United States, attracting fewer views in a month than Netflix garners in just a single day. Furthermore, the service has faced challenges in growing its subscriber base.
Even though Apple TV+’s performance has not caused major concern for the company—given that streaming is not its primary focus—signs indicate that the era of unlimited spending might be coming to an end. This shift is already reflected in the company’s hesitance to renew shows for third seasons, according to Bloomberg’s data.
Notably, Apple TV+ stands out as the only major streaming service without an advertising tier, a situation likely to change after the company hired Joseph Cady, an advertising executive from NBCUniversal, earlier this year.