Apple is reassessing its approach to Apple TV+ after investing approximately $20 billion in original content, according to a Bloomberg report. Company executives, including Eddy Cue, have been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. The streaming service aims to distance itself from the image of being the industry’s largest spender.
Apple’s investment in original programming has been substantial, with notable expenditures including $250 million for the miniseries “Masters of Air,” which had minimal impact upon release. Additionally, the company has invested over $500 million on films directed by prominent filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this significant financial outlay, Apple TV+ currently holds a mere 0.2% share of TV viewership in the United States, with its monthly views falling short of what Netflix achieves in just 24 hours. The service has also faced challenges in attracting new subscribers.
Although Apple TV+ has encountered difficulties, it remains a secondary focus for the tech giant, which is not primarily dependent on streaming revenue. However, there are indications that the era of unrestricted spending may come to an end, as evidenced by the company’s hesitance to renew series for third seasons. Furthermore, Apple TV+ is the last major streaming platform without an advertising tier, a situation likely to change with the recent hiring of advertising executive Joseph Cady from NBCUniversal.