Apple is reassessing its strategy for Apple TV+ after investing a staggering $20 billion in original content, according to a report from Bloomberg. The company recognizes that it is spending excessively on productions that may not resonate with audiences.
In discussions led by Apple executive Eddy Cue with studio heads Zack Van Amburg and Jamie Erlicht, the focus is shifting towards controlling budgets. The leaders of Apple TV+ are reportedly eager to change the narrative surrounding the platform’s reputation as the industry’s largest spender on content.
Among its significant investments was a $250 million expenditure for the miniseries “Masters of Air,” released this year but failing to attract substantial viewership. Additionally, Apple has invested over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its massive financial outlay, Apple TV+ accounts for only 0.2% of television viewership in the U.S., garnering fewer views in a month than Netflix can achieve within 24 hours. The service has also faced challenges in growing its subscriber base.
While Apple is not overly concerned about the struggles of its streaming service—since it is not a primary focus of the company—the era of unrestricted spending appears to be coming to an end. This sentiment is evident in its hesitation to renew shows for third seasons, as indicated by Bloomberg’s findings.
Notably, Apple TV+ is the last major streaming platform without an ad-supported tier, a situation that is likely to evolve following the appointment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.