Apple is aware it is spending excessively on TV shows and movies that many people have neither seen nor heard of.
The company is reevaluating its strategy for Apple TV+ after investing an enormous $20 billion in original content, reported Bloomberg.
According to the outlet, Apple executive Eddy Cue has been meeting with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht to consider budget cuts. Van Amburg and Erlicht have allegedly been communicating that the streamer aims to shed its reputation as the industry’s most lavish spender.
Apple has invested significant amounts, reportedly spending $250 million on the miniseries “Masters of Air,” which was released this year to limited interest.
The company has also spent more than $500 million on movies directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn, according to Bloomberg.
Despite these extensive investments, Apple TV+ holds just 0.2% of TV viewership in the US, garnering fewer views in a month than Netflix achieves in a single day. It has also struggled to grow its subscriber base.
Apple’s issues with TV+ don’t appear to concern the company significantly, as streaming isn’t central to its business. However, the era of unlimited spending seems to be coming to an end, evidenced by its reluctance to renew shows for third seasons, according to Bloomberg data.
Apple TV+ remains the last major streaming service without an ad-supported tier. This is likely to change following the company’s hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.