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 Bloomberg.
The tech giant’s executives, including Eddy Cue, have been discussing budget cuts with studio heads Zack Van Amburg and Jamie Erlicht as they seek to change the perception of Apple TV+ as the biggest spender in the industry. The platform notably spent $250 million on the miniseries “Masters of Air,” which received minimal attention upon its release.
Additionally, Apple has invested over $500 million in films by renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn. However, despite this extensive financial commitment, Apple TV+ holds a mere 0.2% of U.S. TV viewership, attracting fewer views in a month than Netflix garners in just one day. The service has also faced challenges in boosting its subscriber numbers.
Although Apple TV+’s issues do not seem to be a top concern for the company, as streaming is not central to its business model, the era of unrestricted spending may soon be coming to a close. This shift is already reflected in Apple’s hesitance to renew shows for third seasons.
Currently, Apple TV+ remains the only major streaming platform without an advertising tier, but this may change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.