Apple is reassessing its strategy for Apple TV+ after reportedly spending an astounding $20 billion on original content, much of which has gone unnoticed by viewers.
According to Bloomberg, Apple executive Eddy Cue has engaged in discussions with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, about curbing spending on productions. The studio leaders have been expressing a desire for the platform to move away from being viewed as the biggest spender in the industry.
Apple has made significant financial commitments to various projects, including a $250 million investment in the miniseries “Masters of Air,” which launched this year but failed to gain audience traction. Moreover, the company has invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extraordinary expenditure, Apple TV+ accounts for just 0.2% of television viewership in the United States, attracting fewer views in a month than Netflix generates in just one day. Additionally, the service has struggled to grow its subscriber base.
Although the challenges facing Apple TV+ may not alarm the tech giant—given that streaming is not its primary focus—the era of unrestricted spending appears to be coming to an end. This shift is evidenced by the company’s hesitance to renew certain shows for third seasons, as reported by Bloomberg.
Importantly, Apple TV+ remains the last significant streaming platform without an advertising tier. However, this may soon change, following the hire of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.