Apple is reassessing its strategy for Apple TV+ after reportedly spending around $20 billion on original content, much of which has gone unnoticed by audiences.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to reduce production budgets. The aim is to shift the perception of the streaming service away from being the largest spender in the industry.
The company has made significant investments in high-profile projects, including $250 million for the miniseries “Masters of Air,” which did not perform well upon release. Additionally, Apple has invested over $500 million in films from notable directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these massive expenditures, Apple TV+ holds just 0.2% of television viewership in the U.S., garnering fewer views in a month than Netflix achieves in just a single day. The service has also faced challenges in growing its subscriber base.
While Apple’s overall business remains unaffected, as streaming is not its primary focus, the trend of unrestricted spending appears to be coming to an end. The company has already indicated a reluctance to renew some shows for third seasons, according to Bloomberg’s findings.
Notably, Apple TV+ is the only major streaming platform without an advertising tier. This may soon change, as the company recently appointed Joseph Cady, a former ad executive from NBCUniversal.