Apple is reevaluating its approach to Apple TV+ after spending approximately $20 billion on original content, as reported by Bloomberg. The company’s executives, including Eddy Cue, have been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to tighten budgets and reshape the platform’s spending reputation.
The high costs associated with shows and films, such as the $250 million miniseries “Masters of Air,” which had lackluster viewership, have raised concerns. Additionally, Apple has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these expenditures, Apple TV+ captures only 0.2% of U.S. television viewership and struggles to compete with competitors like Netflix, which garners more views in a single day than Apple TV+ sees in an entire month. The platform has also faced challenges in attracting and retaining subscribers.
While streaming is not a primary focus of Apple’s business, the company appears to be scaling back on its lavish spending, as evidenced by its hesitance to renew shows for third seasons. Apple TV+ currently stands out as the only major streaming service without an advertising tier, though changes may be on the horizon following the hiring of advertising executive Joseph Cady from NBCUniversal earlier this year.