Apple TV+ at a Crossroads: Is the End of Excessive Spending Near?

Apple is reassessing its strategy for Apple TV+ after reportedly spending around $20 billion on original content, much of which has gone unnoticed by audiences. Executives, including Eddy Cue, have been discussing budget cuts with studio heads Zack Van Amburg and Jamie Erlicht. They aim to move away from the platform’s perception as the biggest spender in the industry.

Apple has invested significantly in various projects, spending $250 million on the miniseries “Masters of Air,” which received minimal viewership, as well as over $500 million on films directed by prominent filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.

Despite this extensive financial commitment, Apple TV+ has captured only 0.2% of U.S. TV viewership, struggling to attract subscribers compared to competitors. Although the streaming service’s performance has not deeply concerned the tech company, which does not prioritize streaming in its core business model, signs suggest that the era of unrestricted spending is coming to an end. This change is already apparent in the company’s hesitance to renew shows for third seasons.

Additionally, Apple TV+ remains the only major streaming service without an ad-supported tier, a situation that may soon change following the recent hiring of advertising executive Joseph Cady from NBCUniversal.

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