Apple is reportedly reevaluating its strategy for Apple TV+ after an astonishing expenditure of $20 billion on original content, much of which has garnered little attention.
According to Bloomberg, Apple executive Eddy Cue is in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets. The studio executives have indicated a desire to move away from their image as the largest spender in the industry.
The company has invested substantial amounts in various projects, including $250 million for the miniseries “Masters of Air,” released this year to minimal impact. Additionally, Apple has spent over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this lavish spending, Apple TV+ only occupies a mere 0.2% of TV viewership in the U.S., attracting fewer views in a month than Netflix typically sees in a single day. The platform has also faced difficulties in gaining new subscribers.
While Apple has not shown significant concern regarding streaming, as it is not a primary focus of its business, signs suggest that its era of unlimited spending is ending. This shift is evidenced by a hesitance to renew shows for third seasons, as per Bloomberg’s findings.
Notably, Apple TV+ remains the last significant streaming service without an advertising tier, but this may change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.