Apple is reportedly reassessing its spending strategy for Apple TV+ after investing an astounding $20 billion in original content, much of which remains largely unknown to viewers. According to Bloomberg, Apple executive Eddy Cue has been in discussions with the streaming service’s studio heads, Zack Van Amburg and Jamie Erlicht, about reducing production budgets. The pair is said to be working toward improving the brand’s image, stepping back from its status as the industry’s highest spender.
Despite pouring significant funds into projects—such as the $250 million spent on the miniseries “Masters of Air,” which failed to gain traction—Apple TV+ has only captured a mere 0.2% of TV viewership in the U.S., trailing behind Netflix, which garners more views in a single day than Apple TV+ does in an entire month. The platform has also struggled to grow its subscriber base.
Although Apple has shown little concern for its streaming service’s challenges—since it is not a primary focus of its business—the company seems to be signaling a shift away from unlimited spending, as evidenced by its hesitance to renew shows for a third season. Additionally, Apple TV+ remains the only major streaming service without an ad-supported tier, a situation likely to change following the hiring of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.