Apple is reportedly reassessing its strategy for Apple TV+ after spending an astonishing $20 billion on original content, much of which remains largely unseen by audiences.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about controlling budgets and moving away from its image as the biggest spender in the industry. The team has been communicating that the streaming service aims to alter its financial approach.
The company has made significant investments in productions, including $250 million for the miniseries “Masters of Air,” which this year did not gain much traction. Additionally, Apple has invested over $500 million in films from prominent directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these extensive expenditures, Apple TV+ holds only 0.2% of TV viewership in the United States, drawing fewer views in a month than Netflix does in just one day. The platform has also faced challenges in growing its subscriber base.
Even though Apple TV+ has had its difficulties, they have not caused significant concern for the tech giant, as streaming is not a primary focus of its business model. However, the company appears to be shifting its approach, as indicated by its hesitation to renew shows for third seasons.
Notably, Apple TV+ is currently the only major streaming service without an advertising tier, though this may change soon following the recruitment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.