Apple is reevaluating its approach to Apple TV+ after reportedly spending around $20 billion on original content, much of which has gone unnoticed by audiences. According to Bloomberg, Apple executive Eddy Cue has been discussing budget cuts with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht, who have expressed a desire to move away from the platform’s reputation as the largest spender in the industry.
The company has invested heavily in various projects, such as the $250 million miniseries “Masters of Air,” which received a lukewarm reception upon release. Additionally, Apple has allocated over $500 million for films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this substantial investment, Apple TV+ holds only 0.2% of television viewership in the U.S., with its monthly viewership trailing significantly behind that of Netflix, which can achieve more views in just 24 hours. Apple’s streaming service has also experienced difficulties in growing its subscriber base.
Although Apple TV+’s challenges don’t seem to concern the tech giant, as streaming isn’t a core aspect of its business, it appears that the era of unrestricted spending is coming to an end. This shift is already evident in the company’s hesitance to renew shows for third seasons, as indicated by recent data.
Notably, Apple TV+ is currently the only major streaming service without an advertising tier, a situation that may change following the hiring of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.