Apple is reevaluating its approach to Apple TV+ after spending a staggering $20 billion on original content, much of which viewers may be unfamiliar with.
According to reports, Apple executive Eddy Cue has been in discussions with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, regarding budget cuts. The studio chiefs have reportedly indicated that the platform aims to move away from its image as the industry’s highest spender.
Apple has invested significant sums in productions, including $250 million on the miniseries “Masters of Air,” which premiered this year with minimal audience engagement. Additionally, the company has allocated over $500 million for films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive investment, Apple TV+ currently holds a mere 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix does in just one day. The service has also faced challenges in subscriber growth.
While Apple has not prioritized streaming as a core segment of its business, the trend of unchecked spending may be coming to an end. Signs of this shift include the company’s hesitance to renew shows for third seasons. Furthermore, Apple TV+ remains the last major streaming platform without an advertising tier, a situation likely to change following the hiring of Joseph Cady, a former NBCUniversal advertising executive, earlier this year.