Apple is reassessing its strategy for Apple TV+ after reportedly spending an astonishing $20 billion on original programming, much of which includes shows and movies that have not captured significant audience attention.
According to Bloomberg, Apple executive Eddy Cue has been engaged in discussions with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, about controlling spending. The studio leaders have indicated that there is a desire within the company to move away from its image as the largest financial contributor in the streaming industry.
The tech giant has invested large sums in high-profile projects, such as the $250 million miniseries “Masters of Air,” released this year with little impact. Additionally, Apple has allocated over $500 million for films from acclaimed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this significant investment, Apple TV+ accounts for a mere 0.2% of television viewership in the United States, with fewer monthly views than what Netflix garners in just a single day. The platform has also faced challenges in growing its subscriber base.
Although Apple doesn’t seem particularly troubled by the streaming service’s underperformance, given that it’s not central to its business model, the era of unrestricted financial outlay appears to be coming to an end. This shift is already evidenced by the company’s cautious approach to renewing series for third seasons.
Notably, Apple TV+ remains the only major streaming platform without an advertising-supported tier, a situation likely destined to change following the appointment of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.