Apple is reportedly reevaluating its strategy for Apple TV+ after spending a significant $20 billion on original content, much of which remains obscure to viewers. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. The studio chiefs have indicated a desire to move away from being perceived as the biggest spender in the industry.
The streaming platform has made substantial investments in high-profile shows and films, including $250 million on the miniseries “Masters of Air,” which premiered this year without much success. It has also invested over $500 million in projects by notable directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive spending, Apple TV+ holds a mere 0.2% share of TV viewership in the United States, attracting far fewer viewers in a month than Netflix does in just one day. The platform has struggled to attract new subscribers, but the challenges it faces do not appear to concern Apple significantly, as streaming is not central to its business model. However, hints of budget constraints are emerging, especially with the company’s reluctance to renew shows for a third season.
Currently, Apple TV+ remains the only major streaming service without an advertising tier, although this may soon change following the appointment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.