Apple is reevaluating its strategy for Apple TV+ after investing an astonishing $20 billion in original content, according to a report by Bloomberg. The company is aiming to manage its spending more effectively, as Apple executive Eddy Cue has been in discussions with studio leaders Zack Van Amburg and Jamie Erlicht about cutting budgets and changing the platform’s image as the biggest spender in the industry.
Among its significant expenditures, Apple committed $250 million to the miniseries “Masters of Air,” which premiered this year but did not perform well. The platform has also invested over $500 million in blockbuster films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this heavy investment, Apple TV+ captures only 0.2% of TV viewership in the United States, attracting significantly fewer viewers in a month than Netflix does in just one day, and it has faced challenges in growing its subscriber base.
Although these challenges have not raised alarms within Apple, as streaming is not a primary focus of its operations, a shift away from unlimited spending appears imminent. The company has reportedly shown reluctance to renew shows for additional seasons, reflecting a new approach.
Furthermore, Apple TV+ remains the only major streaming service without an advertising tier, but this may change following the hire of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.