Apple is reassessing its strategy for the Apple TV+ platform after spending an astonishing $20 billion on original content. Reports indicate that executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about curbing production budgets. The executives are reportedly aiming to change the perception of Apple TV+ as the industry’s largest spender.
The company has made significant financial commitments for various projects, including $250 million for the miniseries “Masters of Air,” which has received little attention since its release. Additionally, Apple has invested over $500 million in films from prominent directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these large expenditures, Apple TV+ holds a mere 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix does in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While Apple does not prioritize streaming as a key part of its business model, its current approach of unlimited spending appears to be coming to an end. The company has already shown signs of this shift by hesitating to renew shows for third seasons. Furthermore, Apple TV+ is the last major streaming service without an advertising tier, a situation that could soon change following the hiring of Joseph Cady, a former executive from NBCUniversal.