Apple is re-evaluating its strategy for Apple TV+ after reportedly spending around $20 billion on original content. The company aims to scale back its budgets for shows and movies. Executive Eddy Cue has been discussing this with studio heads Zack Van Amburg and Jamie Erlicht, who have expressed a desire to move away from being labeled as the biggest spender in the industry.
The tech giant has invested enormous amounts in productions, including $250 million for the miniseries “Masters of Air,” which received minimal attention upon its release. Additionally, it has spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite such extensive expenditures, Apple TV+ holds only 0.2% of television viewership in the U.S., trailing significantly behind Netflix, which accumulates more views in 24 hours than Apple does in an entire month. The service has also faced challenges in boosting its subscriber base.
While streaming is not a primary focus of Apple’s business, the company’s unrestricted spending appears to be coming to an end. This shift is evident as it has been cautious about renewing shows for third seasons. Notably, Apple TV+ remains the last major streaming platform without an advertisement-supported tier, a situation likely to change following the recent hiring of Joseph Cady, a former NBCUniversal ad executive.