Apple is reportedly reevaluating its approach to Apple TV+ after spending an astonishing $20 billion on original content that has largely gone unnoticed by viewers.
According to sources, Apple executive Eddy Cue has met with studio leaders Zack Van Amburg and Jamie Erlicht to discuss cutting back on production budgets. The studio heads have indicated a desire for the platform to shed its image as the biggest spender in the industry.
The company has made significant investments in high-profile projects, including $250 million on the miniseries “Masters of Air,” which failed to gain much traction upon release. Additionally, it has invested over $500 million in films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these extensive expenditures, Apple TV+ has managed to capture only 0.2% of television viewership in the United States, attracting fewer views in a month than Netflix does in just one day. The service has also faced challenges in boosting its subscriber base.
Streaming remains a secondary focus for Apple, and as a result, the company appears less concerned about the underperformance of Apple TV+. However, signs suggest that its unrestrained spending may be coming to an end, as indicated by its hesitance to renew certain series for third seasons.
Moreover, Apple TV+ is currently the only major streaming service without an advertising tier, a situation that could change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.