Apple is reassessing its investment strategy for Apple TV+ after reportedly spending approximately $20 billion on original content that has not resonated widely with audiences. Sources indicate that Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about controlling budgets and shifting the platform’s spending reputation, which has made it the largest financier in the industry.
The company has invested heavily in productions such as the $250 million miniseries “Masters of Air,” which launched this year without significant impact. Additionally, it has allocated over $500 million for films by renowned directors including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive financial commitment, Apple TV+ holds only 0.2% of TV viewership in the United States and garners fewer views in a month than Netflix achieves in just 24 hours. The service has also faced challenges in boosting its subscriber base.
Streaming remains a peripheral aspect of Apple’s core business, which may explain the lack of urgency regarding these issues. However, the company’s limits on spending appear to be tightening, as evidenced by its hesitance to renew shows for third seasons.
Interestingly, Apple TV+ is the only major streaming platform without an advertising tier, a situation that could change soon following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.