Apple is reportedly aware that it is spending excessively on TV shows and movies that many consumers may not be familiar with. The company is contemplating a new strategy for Apple TV+ after investing a staggering $20 billion in original content, according to Bloomberg.
Apple executive Eddy Cue has been in discussions with the studio chiefs of Apple TV+, Zack Van Amburg and Jamie Erlicht, about reducing budgets. The executives are also conveying a desire for the streaming service to move away from its image as the highest spender in the industry.
The company has poured substantial amounts into various productions, including $250 million for the miniseries “Masters of Air,” which premiered this year with minimal audience response. Additionally, Apple has invested over $500 million in films from prominent directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive expenditure, Apple TV+ holds only a 0.2% share of TV viewership in the U.S., attracting fewer viewers in a month than Netflix garners in just one day. The platform has also faced difficulties in growing its subscriber base.
Although Apple TV+’s challenges have not seemed to concern the tech conglomerate—given that streaming is not their primary business—it appears that the era of unlimited spending may be coming to an end. Signs of this change include their reluctance to renew shows for third seasons.
Notably, Apple TV+ is currently the last major streaming service that does not offer an ad-supported tier. However, this could change soon, as the company recently hired Joseph Cady, an advertising executive from NBCUniversal.