Apple is reevaluating its strategy for Apple TV+ after reportedly spending around $20 billion on original content, much of which remains under the radar for viewers.
Bloomberg revealed that Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht, focusing on reducing production budgets. Both executives have suggested that the platform aims to move away from being known as the largest spender in the streaming industry.
The company has invested significantly in high-profile projects, such as the $250 million miniseries “Masters of Air,” which launched this year but failed to attract a substantial audience. In addition, Apple has committed over $500 million to films from renowned directors including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ accounts for only 0.2% of television viewership in the United States, garnering fewer views in a month than Netflix achieves in just one day. The service has also faced challenges in growing its subscriber base.
While the streaming segment doesn’t represent a core part of Apple’s business, the company seems to be signaling a shift away from unrestricted spending. This is evident in its hesitation to renew shows for third seasons, as reported by Bloomberg.
Additionally, Apple TV+ is the only major streaming service currently lacking an ad-supported tier, a situation that may soon change following the company’s hiring of Joseph Cady, a former ad executive from NBCUniversal.