Apple is reevaluating its strategy for Apple TV+ following substantial spending on original content, reported to be around $20 billion. Executives at the company, including Eddy Cue, have been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets. These discussions come as the streaming service aims to improve its public perception and move away from its reputation as the industry’s largest spender.
Apple’s investment in shows and movies has included a notable $250 million for the miniseries “Masters of Air,” which garnered minimal attention upon release. Additionally, more than $500 million has been allocated for films from prominent directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the hefty budget, Apple TV+ holds only a 0.2% share of TV viewership in the United States, with fewer views in a month than Netflix receives in just 24 hours. The service has also faced challenges in increasing its subscriber base.
While these challenges have not raised significant concern for Apple, as streaming is not central to its business model, the era of unrestricted spending appears to be coming to an end. This is indicated by the company’s hesitation to renew shows for third seasons, as noted in recent Bloomberg reports.
Currently, Apple TV+ stands as the last major streaming platform lacking an ad-supported tier, a situation that may soon change, especially after the recent hiring of ad executive Joseph Cady from NBCUniversal.