Apple is reportedly reassessing its approach to Apple TV+ after investing a staggering $20 billion in original content. According to Bloomberg, executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets. The duo has expressed a desire for the platform to shake off its image as the industry’s largest spender.
The tech giant has made significant financial commitments to various shows and films, including a notable $250 million for the miniseries “Masters of Air,” which failed to gain much attention following its release this year. Additionally, Apple has invested over $500 million on movies from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the hefty spending, Apple TV+ commands only 0.2% of television viewership in the United States, struggling to compete with Netflix, which can achieve more views in 24 hours than Apple manages in a month. The platform has also faced challenges in growing its subscriber base.
While Apple does not appear overly concerned about the underperformance of its streaming service, as it is not a primary focus of its business, it seems the era of unrestrained spending may be coming to an end. The company has already indicated its restraint by hesitating to renew shows for third seasons, according to Bloomberg analysis.
Currently, Apple TV+ is the only major streaming service without an advertising tier, but this may change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.