Apple is reportedly reassessing its spending strategy for Apple TV+, following a substantial investment of $20 billion in original content. The company aims to reduce its budget for shows and movies, which include high-profile projects like the $250 million miniseries “Masters of Air,” which has seen minimal audience interest.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about streamlining expenditures. The studio leaders are said to be focused on reshaping the platform’s image, moving away from being perceived as the industry’s largest spender.
Despite the significant financial commitment, Apple TV+ has captured only 0.2% of total TV viewership in the United States, attracting fewer viewers in a month than Netflix does in just 24 hours. Additionally, Apple has faced challenges in growing its subscriber base.
Although the streaming service’s struggles have not raised major concerns within Apple, as it does not constitute a primary part of the company’s business model, its era of lavish spending may be coming to an end. This shift has already been indicated by Apple’s hesitation to renew shows for third seasons.
Notably, Apple TV+ is the last major streaming service without an advertising tier, a situation that may soon change following the hiring of Joseph Cady, a former NBCUniversal ad executive, earlier this year.