Apple is reassessing its strategy for Apple TV+ after reportedly spending an astonishing $20 billion on original content. According to Bloomberg, the company is trying to rein in budgets after realizing its significant investment has not translated into substantial viewership.
Apple executives, including Eddy Cue, have been in discussions with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, to address the excessive spending. The streamer’s leadership has expressed a desire to move away from its image as the highest spender in the industry.
The company has made considerable financial commitments to projects, such as the $250 million spent on the miniseries “Masters of Air,” which struggled to gain audience engagement upon its release this year. Additionally, Apple has invested over $500 million in films directed by renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these efforts, Apple TV+ captures only 0.2% of the U.S. television viewership and receives fewer views in a month than Netflix does within a single day. Subscriber growth has also been a challenge for the platform.
Although Apple’s core business does not heavily rely on streaming services, it appears the era of unlimited spending is coming to an end. This shift is already reflected in the company’s hesitance to renew shows for third seasons, as reported by Bloomberg.
Currently, Apple TV+ remains the only major streaming service without an advertisement-supported tier, a situation that is likely to change following the recruitment of Joseph Cady, a former NBCUniversal ad executive, earlier this year.