Apple is reportedly reassessing its strategy regarding Apple TV+, particularly after spending an astonishing $20 billion on original content, much of which remains largely unknown to viewers.
According to Bloomberg, Apple executive Eddy Cue has engaged in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets. There have been indications from the duo that the streaming service aims to distance itself from its image as the largest spender in the industry.
Significant expenditures have included $250 million for the miniseries “Masters of Air,” which premiered this year but failed to gain substantial attention. Additionally, Apple has invested over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these hefty investments, Apple TV+ holds just 0.2% of the TV viewership in the United States, attracting fewer viewers in a month than Netflix garners in just 24 hours. The platform has also faced challenges in growing its subscriber base.
Despite the issues facing Apple TV+, the tech giant does not appear overly concerned, as streaming is not a primary focus of its business operations. However, signs indicate that the era of unrestricted spending may be coming to an end. The company has already hinted at this shift by being reluctant to renew shows for third seasons, as per Bloomberg’s findings.
Currently, Apple TV+ is the only major streaming service without an advertising tier, but this may soon change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.