Apple is re-evaluating its strategy for Apple TV+ following significant expenditures reportedly totaling $20 billion on original content, which has garnered minimal audience attention. According to sources, Apple executive Eddy Cue has been in discussions with studio chiefs Zack Van Amburg and Jamie Erlicht about tightening budgets. The streaming platform aims to shift away from its image as the largest spender in the industry.
The tech giant has invested heavily in high-profile projects, such as the $250 million miniseries “Masters of Air,” which launched this year but failed to gain traction. Additionally, Apple has spent over $500 million on films by well-known directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the hefty investments, Apple TV+ commands only 0.2% of television viewership in the United States, with its viewership figures in a month falling short of what Netflix achieves in just 24 hours. The platform has also faced challenges in attracting new subscribers.
While Apple doesn’t primarily focus on streaming services, it appears to be moving towards a more cautious financial strategy, suggesting a potential reduction in its previous level of spending, especially as indicated by its hesitance to renew shows for additional seasons.
Notably, Apple TV+ remains the only major streaming service without an advertising tier, a situation expected to change following the company’s recent hiring of ad executive Joseph Cady from NBCUniversal.