Apple TV+ just isn't in the same wheelhouse as Netflix and other streamers, so the company is pivoting.

Bloomberg reports that Apple is starting a new strategy in Hollywood, changing its reputation as the biggest spender, and trying to make its streaming more sustainable.

What Apple is spending on streaming

The creators of the iPhone spent over $500 million on movies from heavy hitters like Ridley Scott, Martin Scorses, and Matthew Vaughn. They also spent $250 million on Masters of the Air, a World War II series starring Austin Butler, Callum Turner, Barry Keoghan, and Anthony Boyle.

With this said, the movies mostly performed poorly at the box office. Killers of the Flower Moon did okay as a streamed movie, actually ranking on Nielsen's charts. Also, Masters of the Air ranked, too.

We also can't rule out the critically acclaimed Severance. It has a solid 97% Tomatometer score and an 87% audience score on Rotten Tomatoes. But Severance also ended up costing $20 million an episode, making it one of the most expensive TV projects.

Billions are spent on original programming, but Apple's streaming isn't anywhere near the levels it needs to be at. To put it in perspective, Netflix gets more viewing in one day than Apple TV+ does in one month. Ouch!

Bloomberg Intelligence analysts Geetha Ranganathan and Kevin Near wrote recently, “Subscriber growth has been weak, with the platform's original content a fraction of what rivals offer.”

So, what's a streaming platform like Apple to do?

For one, management is trying not to pay so much upfront for shows. And if a series is performing poorly, they'll get canceled quickly. Much more quickly than they did in the past.

One major difference between Apple and other streamers is that they don't license older television shows and movies. So, they have just a handful of programs and don't flood the market like Netflix and others. They focus on major stars like Jason Momoa, Oprah Winfrey, and Steven Spielberg.

There was also the star power in shows like The Morning Show, which features Jennifer Aniston and Reese Witherspoon. Apple's shelling out over $50 million on just the cast for the news broadcast series.

All this said, it still hasn't managed to expand to a bigger audience. At 310.5 million hours, it ranks just above Paramount+ for streaming hours.

So, with budget woes and no major audience, Apple is delaying production on some shows, like Foundation, to ensure they're more on budget. Plus, they're working to reduce the cost of other programs, like Severance.

We'll see if Apple TV+ ever achieves Netflix-level success. It has a ways to go, but at least it's cranking out some top-notch material.