Apple is reevaluating its approach to Apple TV+ after spending an astonishing $20 billion on original programming, many of which remain largely unknown to viewers. According to reports, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to reduce budgets and shift away from the perception of being the industry’s largest spender.
The company has made significant investments in titles, including $250 million for the miniseries “Masters of Air,” which did not gain much traction upon release. Additionally, Apple has spent over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive expenditure, Apple TV+ holds a mere 0.2% of TV viewership in the United States, with its monthly viewership falling short compared to Netflix’s figures garnered in just 24 hours. The service has also faced challenges in attracting new subscribers.
Although Apple does not seem overly concerned about the struggles of Apple TV+, given that streaming is not a central part of its business model, it appears that the era of unlimited spending is coming to an end. This shift is already being reflected in the company’s hesitance to renew shows for third seasons.
Apple TV+ currently remains the last major streaming platform without an advertising tier, but this could soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.