Apple is reportedly reassessing its strategy for Apple TV+ after investing an astounding $20 billion in original content, according to Bloomberg. The company is aware that it has been spending excessively on shows and movies that many viewers may not know about.
Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets. The duo has indicated a desire to move away from the platform’s image as a significant spender in the industry.
This massive outlay includes $250 million for the miniseries “Masters of Air,” released this year, which has seen minimal engagement. Additionally, Apple has invested over $500 million in films by notable directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ holds only 0.2% of TV viewership in the United States, garnering fewer views in a month than Netflix achieves in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While streaming is not central to Apple’s business model and the company appears unconcerned about these issues, signals indicate a shift away from its previous unlimited spending. This is reflected in its cautious approach to renewing shows for third seasons, as highlighted by Bloomberg.
Notably, Apple TV+ remains the only major streaming service without an ad-supported tier, a situation that is likely to change following the hiring of advertising executive Joseph Cady from NBCUniversal earlier this year.