Apple is recognizing that it may be overspending on TV shows and movies that many people are not familiar with. The company is reportedly considering a new strategy for its streaming service, Apple TV+, after investing a staggering $20 billion in original content, according to Bloomberg.
Executive Eddy Cue has been meeting with studio heads Zack Van Amburg and Jamie Erlicht to discuss cutting costs. They are said to be working to change the perception of Apple TV+ as the largest spender in the industry.
Apple has invested heavily in productions, including $250 million on the miniseries “Masters of the Air,” which saw a disappointing reception upon its release. The company has also allocated over $500 million for films by notable directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its extensive spending, Apple TV+ holds just 0.2% of the U.S. TV viewership, attracting fewer viewers in one month than Netflix garners in just 24 hours. The service has also found it challenging to grow its subscriber base.
Although Apple TV+ is facing difficulties, the broader tech company appears unfazed, as streaming is not a primary focus of its business. However, signs indicate that its era of unlimited spending is coming to an end, especially as the company has shown hesitance in renewing shows for third seasons.
Notably, Apple TV+ remains the only major streaming platform without an ad-supported tier. This could change soon, as the company recently hired Joseph Cady, a former ad executive from NBCUniversal.