Apple is reportedly reassessing its strategy for Apple TV+ after spending around $20 billion on original content, much of which has gone largely unnoticed by viewers.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about managing production budgets more effectively. The duo is said to be aiming to change the platform’s perception as the highest spender in the industry.
Despite hefty investments, including $250 million on the miniseries “Masters of Air,” which was released this year with minimal impact, and over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn, Apple TV+ has only captured 0.2% of the TV viewership in the United States. This figure pales in comparison to the number of views Netflix receives in just 24 hours, and Apple has faced challenges in growing its subscriber base.
Although the streaming service’s struggles have not significantly concerned Apple, as streaming is not central to its business, the era of unrestricted spending appears to be coming to an end. This is indicated by the company’s hesitance to renew series for third seasons, as noted in Bloomberg’s analysis.
Currently, Apple TV+ is unique among major streaming platforms in that it does not offer an ad-supported tier. However, this might soon change, following the hiring of Joseph Cady, a former NBCUniversal advertising executive, earlier this year.