Apple is reportedly reassessing its strategy for Apple TV+ after spending an estimated $20 billion on original content that has not gained considerable traction among viewers. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets and moving away from their image as the biggest spenders in the streaming industry.
The company has made significant financial commitments, including $250 million for the miniseries “Masters of Air,” which was released this year but received a lackluster response. Additionally, it has invested over $500 million in films directed by notable filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this heavy investment, Apple TV+ holds just a 0.2% share of TV viewership in the US, with its monthly views being outpaced by Netflix’s numbers within just a single day. The service has also faced challenges in growing its subscriber base.
Although streaming is not a primary focus for Apple’s broader business strategy, signs indicate that the company’s era of unrestricted spending may be coming to an end, particularly as it has shown hesitance in renewing shows for third seasons. Apple TV+ currently remains the only major streaming platform without an advertising tier, but this may change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.