Apple is reportedly reassessing its spending strategy for Apple TV+ after investing an eye-popping $20 billion in original content, according to a report by Bloomberg. The company is aiming to reduce its budgets as it looks to shed its image as the biggest spender in the industry.
Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to implement this new approach. The company has invested heavily in projects, such as the $250 million miniseries “Masters of Air,” which launched this year but received limited viewer engagement. Additionally, it has spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite significant financial outlay, Apple TV+ commands a mere 0.2% of television viewership in the U.S., with its monthly viewership numbers being far fewer than what Netflix garners in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While streaming is not central to Apple’s core business, the company appears to be reining in its lavish spending, as evidenced by its hesitation to renew shows for third seasons. Notably, Apple TV+ is the last major streaming platform without an advertising tier, although that may soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.