Apple is reportedly reevaluating its spending strategy for Apple TV+, having invested an astonishing $20 billion in original content. This move comes amid discussions among Apple executives, including Eddy Cue and studio chiefs Zack Van Amburg and Jamie Erlicht, about controlling costs and reshaping the platform’s image as the industry’s largest spender.
The company’s extravagant spending habits are exemplified by its $250 million investment in the miniseries “Masters of Air,” which premiered with minimal impact. Furthermore, Apple has allocated over $500 million for films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this significant financial commitment, Apple TV+ holds a mere 0.2% share of TV viewership in the US, attracting fewer viewers in a month than Netflix does in just one day. The platform has faced challenges in growing its subscriber base.
Interestingly, Apple does not seem overly concerned about these issues, as streaming is not a primary focus of its business. However, it appears that the era of unrestricted spending may be coming to an end, especially as the company has shown reluctance to renew shows for a third season.
Currently, Apple TV+ stands out as the last major streaming service without an ad-supported tier, but this could change following the recent hiring of Joseph Cady, a former ad executive from NBCUniversal.