Apple is reassessing its approach to Apple TV+ after spending an astonishing $20 billion on original content, much of which has gone unnoticed by viewers. The company is reportedly looking to tighten budgets and shift away from its reputation as the biggest spender in the industry.
Eddy Cue, an Apple executive, has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about controlling expenses. The team is said to be working on shedding the image of excessive spending while trying to improve viewership.
Apple has invested significant sums in productions, including a notable $250 million for the miniseries “Masters of Air,” which premiered this year with little audience traction. Additionally, over $500 million has been allocated for movies featuring acclaimed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the hefty investments, Apple TV+ holds a mere 0.2% of television viewership in the United States, receiving fewer views in a month than Netflix typically garners in just one day. The platform has also faced challenges in increasing its subscriber base.
Although Apple does not view streaming as a core segment of its business, there are indications that the era of boundless spending is coming to an end. The company has already shown hesitance to renew shows for third seasons, as reported by Bloomberg.
Notably, Apple TV+ remains the only major streaming service without a tier featuring advertisements. However, this may soon change following the hiring of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.