Apple is reportedly reassessing its financial strategy for Apple TV+ after investing approximately $20 billion in original content, a figure that has raised concerns about overspending. According to Bloomberg, company executive Eddy Cue has been in discussions with Apple TV+ executives Zack Van Amburg and Jamie Erlicht to scale back budgets and adjust the platform’s image as a major industry spender.
Apple has made significant financial commitments for various projects, including a notable $250 million for the miniseries “Masters of Air,” which did not achieve significant viewer engagement upon its release. Additionally, the platform has spent over $500 million on films by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this substantial investment, Apple TV+ holds a mere 0.2% share of TV viewership in the United States, receiving fewer total views in a month than Netflix gathers in a single day. The platform has also encountered difficulties in attracting new subscribers.
While Apple does not see streaming as its primary business focus, recent indicators suggest a shift away from its previous open-ended spending approach. This includes hesitance to renew shows for a third season, as revealed in Bloomberg’s reports. Furthermore, Apple TV+ remains the only major streaming service without an advertising tier, a situation that might change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.