Apple is reassessing its strategy for Apple TV+ after spending an astonishing $20 billion on original content, much of which has gone unnoticed by audiences. According to reports, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about scaling back budgets. They aim to change the platform’s image as the industry’s top spender.
The tech giant has invested heavily in projects, such as the $250 million spent on the miniseries “Masters of Air,” which premiered this year but failed to gain traction. Apple has also committed over $500 million towards films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial expenditures, Apple TV+ only captures 0.2% of the TV viewership market in the US, receiving fewer views in a month than Netflix attracts in just a single day. The platform has also faced challenges in growing its subscriber base.
Although Apple isn’t overly concerned about Apple TV+’s difficulties, given that streaming is not central to its operations, it appears to be moving away from its previously unlimited spending model. Evidence of this shift includes the company’s hesitance to renew shows for third seasons. Furthermore, Apple TV+ remains the only major streaming service without an ad-supported tier, a status that may soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.