Apple is reevaluating its approach to Apple TV+ after investing an astonishing $20 billion in original content, according to a report from Bloomberg. The company is reportedly seeking to tighten budgets and move away from its image as the industry’s biggest spender.
Senior Apple executive Eddy Cue has been in discussions with Apple TV+’s studio heads, Zack Van Amburg and Jamie Erlicht, about strategies to rein in expenditures. There are indications that Van Amburg and Erlicht are looking to shed the perception of excessive spending associated with the platform.
The tech giant has made significant investments in productions, including $250 million for the miniseries “Masters of Air,” which saw lackluster engagement upon its release this year. Additionally, Apple has allocated over $500 million for films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its considerable financial commitments, Apple TV+ captures only 0.2% of TV viewership in the US, lagging far behind competitors like Netflix, which garners more views in just 24 hours than Apple TV+ sees in an entire month. The service has also faced challenges in growing its subscriber base.
Although Apple does not consider streaming to be a central part of its business, the company appears to be moving away from unlimited spending. This shift is suggested by its hesitance to renew shows for third seasons, as highlighted in Bloomberg’s findings.
Notably, Apple TV+ remains the last major streaming service without an advertising tier, a situation that seems poised to change following the recent hiring of Joseph Cady, a former ad executive from NBCUniversal.