Apple is reassessing its strategy for Apple TV+ after reportedly investing around $20 billion in original programming, much of which remains largely unseen by audiences. According to Bloomberg, executive Eddy Cue has held discussions with studios’ heads, Zack Van Amburg and Jamie Erlicht, about reducing expenses as the platform aims to distance itself from its reputation as the industry’s top spender.
The company has made substantial financial commitments for projects, including $250 million for the miniseries “Masters of Air,” which received little attention upon release. Additionally, Apple has invested over $500 million on films featuring renowned directors like Martin Scorsese and Ridley Scott.
Despite this enormous investment, Apple TV+ commands only 0.2% of television viewership in the United States, trailing far behind competitors like Netflix, which can achieve in one day the viewership Apple gathers in an entire month. The platform has also faced challenges in growing its subscriber base.
While Apple may not prioritize streaming within its overall business model, signs point to a shift away from unchecked spending. This trend is reflected in the company’s hesitance to extend contracts for shows into third seasons. Additionally, Apple TV+ is currently the last major streaming service without an advertising tier, a situation that could soon change following the recent hiring of Joseph Cady, a former ad executive from NBCUniversal.