Apple is reportedly aware that it is overspending on television shows and movies that have gained little recognition among viewers. In light of this, the company is considering a new strategy for its streaming service, Apple TV+, after investing approximately $20 billion in original content, according to Bloomberg.
Sources indicate that Apple executive Eddy Cue has been discussing budget constraints with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht. The leadership has expressed a desire to shift the platform’s reputation away from being the highest spender in the industry.
In its recent spending spree, Apple invested a staggering $250 million in the miniseries “Masters of Air,” which was released this year but failed to garner significant interest. Additionally, the company has allocated more than $500 million for films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive expenditure, Apple TV+ controls only 0.2% of television viewership in the United States, with its monthly viewership falling short of Netflix’s viewership within a single day. The platform has also faced challenges in growing its subscriber base.
Even with these struggles, Apple does not appear overly concerned, as streaming services do not form a central part of its business model. However, the trend of unlimited spending is likely coming to an end, reflected in the company’s hesitance to renew shows for third seasons, as per Bloomberg’s findings.
Notably, Apple TV+ remains the only major streaming service that does not offer an ad-supported tier, a situation that may change following the hiring of advertising executive Joseph Cady from NBCUniversal earlier this year.