Apple is reassessing its approach to Apple TV+ in light of its significant spending on original content, reportedly reaching $20 billion. The company has faced scrutiny over the amount spent on TV shows and movies, many of which have gone largely unnoticed by audiences.
According to reports, Apple executive Eddy Cue has been in discussions with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, about tightening budgets. They have expressed a desire to shift the platform’s image away from being the highest spender in the industry.
Apple’s investment includes notable expenditures such as $250 million on the miniseries “Masters of Air,” which struggled to attract viewers upon its release. The company has also invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these vast financial commitments, Apple TV+ holds a mere 0.2% of television viewership in the United States, significantly lagging behind competitors like Netflix, which garners more views in just 24 hours than Apple TV+ does in an entire month. Additionally, Apple has faced challenges in growing its subscriber base.
While the streaming service has not raised alarm bells within the tech company, as it is not a central focus of its business, reports suggest that the era of unrestricted spending may soon come to a close. Signs of this shift include hesitancy to renew shows for third seasons.
Apple TV+ is currently the only major streaming platform without an ad-supported tier, a situation that may change following the recent hiring of Joseph Cady, a former ad executive from NBCUniversal.