Apple is re-evaluating its strategy for Apple TV+ after spending an estimated $20 billion on original content, much of which has gone unnoticed by viewers. According to Bloomberg, Apple executive Eddy Cue has been in discussions with the heads of Apple TV+, Zack Van Amburg and Jamie Erlicht, to cut back on budgets, as they aim to move away from being recognized as the industry’s largest spender.
The company has invested heavily in projects, including $250 million for the miniseries “Masters of Air,” which failed to gain significant attention upon its release. Additionally, Apple has spent over $500 million on films by well-known directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its vast expenditures, Apple TV+ currently holds a mere 0.2% share of TV viewership in the United States, drawing fewer viewers in a month than Netflix attracts in a single day. The service has also faced challenges in growing its subscriber base.
While Apple does not consider streaming a central part of its business, the company’s trend of unrestricted spending appears to be coming to an end. This shift is already indicated by hesitance in renewing shows for third seasons, based on Bloomberg’s data.
Notably, Apple TV+ is the last major streaming service that doesn’t have an advertising tier. However, this may soon change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.