Apple is reportedly reevaluating its approach to Apple TV+ after investing a staggering $20 billion in original content, much of which remains largely unknown to viewers.
Recent discussions led by executive Eddy Cue with studio heads Zack Van Amburg and Jamie Erlicht have focused on reducing production budgets and changing the perception of Apple TV+ as the highest-spending platform in the industry.
The company has made significant financial commitments, including $250 million for the miniseries “Masters of Air,” which failed to gain much traction despite its release this year. Additionally, Apple has invested over $500 million in films from acclaimed directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its extensive spending, Apple TV+ holds only 0.2% of the US television viewership market, drawing far fewer viewers in a month than Netflix does in just one day. The platform has faced challenges in growing its subscriber base.
Although Apple’s core business does not primarily revolve around streaming, its previous approach of unrestricted spending appears to be shifting, as indicated by its hesitance to renew certain shows for third seasons.
Notably, Apple TV+ is currently the only major streaming service without an advertising tier. However, this may soon change, following the recent hiring of Joseph Cady, a former ad executive from NBCUniversal.