Apple is re-evaluating its strategy for Apple TV+ after spending approximately $20 billion on original content, much of which hasn’t gained significant viewer interest. Reports indicate that Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. The goal is to move away from the service’s image as the highest spender in the streaming industry.
The technology giant has invested heavily in various projects, including $250 million for the miniseries “Masters of Air,” which struggled to attract an audience upon release. Additionally, it has invested over $500 million on films from noted directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its substantial financial outlay, Apple TV+ commands only 0.2% of television viewership in the United States, attracting fewer views in a month than Netflix does in just 24 hours. The platform has faced challenges in growing its subscriber base as well.
While streaming isn’t a primary focus for Apple, the company seems to be shifting away from its previous strategy of limitless spending, as indicated by its hesitance to renew some shows for third seasons. Notably, Apple TV+ remains the only major streaming service without an advertising tier, a situation that may soon change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.