Apple is reportedly reevaluating its strategy for Apple TV+ after spending an astonishing $20 billion on original content. According to Bloomberg, Apple executive Eddy Cue has held discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. The leadership team has indicated that the platform wants to alter its image as the biggest spender in the industry.
The tech giant has invested massive amounts in projects like the $250 million miniseries “Masters of Air,” which debuted this year but garnered minimal traction. Additionally, Apple has allocated over $500 million for films directed by notable filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive investment, Apple TV+ commands a mere 0.2% of the television viewership in the United States, attracting fewer viewers in a month than Netflix draws in just 24 hours. The service has also faced challenges in growing its subscriber base.
While Apple has appeared unconcerned about the struggles of its streaming service—since it does not form the core of its business—the company seems poised to rein in its spending. This shift is reflected in its hesitance to renew shows for third seasons, as reported by Bloomberg.
Notably, Apple TV+ is currently the only major streaming service without an advertising tier, though this may change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.