Apple is reportedly aware of its excessive spending on TV shows and movies, many of which may be unfamiliar to viewers. Following a significant investment of $20 billion in original content, the company is reassessing its strategy for Apple TV+, as revealed by Bloomberg.
Apple executive Eddy Cue has been engaging with studio heads Zack Van Amburg and Jamie Erlicht to discuss budget cuts. The studio leaders have indicated that the streaming service aims to move away from its image as the industry’s largest spender.
Among its costly investments, Apple spent $250 million on the miniseries “Masters of Air,” which received minimal attention upon its release this year. Additionally, the platform has invested over $500 million in films by renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this large expenditure, Apple TV+ commands only 0.2% of TV viewership in the US, attracting fewer viewers in an entire month than Netflix does in just one day. The platform has also faced challenges in growing its subscriber base.
Although Apple TV+’s issues have not caused significant concern for the tech giant—especially since streaming is not a primary aspect of its business—the company appears to be curtailing its unlimited spending. Signs of this shift include hesitance to renew shows for third seasons.
Notably, Apple TV+ is currently the only major streaming service without an advertising tier, but this may change following the hiring of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.