Apple is reassessing its strategy for Apple TV+ after spending a staggering $20 billion on original content, according to a report from Bloomberg. The company is reportedly looking to tighten its budget as executives aim to alter the streaming platform’s image as an industry leader in spending.
Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing expenditures. The platform’s current spending habits have resulted in significant investments in shows and films, such as the $250 million spent on the miniseries “Masters of Air,” which failed to achieve notable viewership.
Additionally, Apple has invested over $500 million in projects from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn. However, despite this extensive investment, Apple TV+ holds only 0.2% of total TV viewership in the US, attracting fewer views in a month than Netflix garners in just 24 hours. Subscriber growth has also been sluggish.
While these challenges exist, they do not seem to pose a significant concern for Apple, as streaming is not central to its overall business model. Nevertheless, the company appears to be moving away from its previous unlimited spending approach, which is reflected in its decision to be more selective about renewing shows for further seasons.
Currently, Apple TV+ is the only major streaming service without an advertisement-supported tier, a situation likely to change following the hiring of Joseph Cady from NBCUniversal to lead its advertising strategy.