Apple is reevaluating its strategy for Apple TV+ as it grapples with its substantial spending on original content, which has reportedly reached $20 billion. According to Bloomberg, Apple executive Eddy Cue has initiated discussions with studio chiefs Zack Van Amburg and Jamie Erlicht about reducing budgets, seeking to alter the platform’s image as the biggest spender in the industry.
The company has made considerable investments in projects, such as the $250 million miniseries “Masters of Air,” which launched earlier this year but failed to gain significant traction. Moreover, Apple has allocated over $500 million for films by renowned directors including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these heavy investments, Apple TV+ has only captured 0.2% of television viewership in the United States, attracting fewer monthly viewers than Netflix sees in a single day. The platform has also faced challenges in growing its subscriber base.
Although Apple’s streaming service issues do not seem to impact its overall business significantly, the era of unrestricted spending is coming to an end. This shift is evidenced by the company’s hesitance to renew series for third seasons, according to Bloomberg’s findings.
Apple TV+ remains the only major streaming service without an advertisement-based tier, a situation expected to change following the appointment of Joseph Cady, formerly from NBCUniversal, as an advertising executive earlier this year.