Apple is reassessing its strategy for Apple TV+ after spending an astonishing $20 billion on original content that many consumers may not recognize. According to reports, Apple executive Eddy Cue has been in discussions with the service’s studio heads, Zack Van Amburg and Jamie Erlicht, about reducing production budgets. The aim is to move away from the company’s image as the biggest spender in the industry.
The tech giant has invested significant sums in various projects, including a staggering $250 million for the miniseries “Masters of Air,” released this year but met with minimal audience engagement. Additionally, Apple has spent over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive investment, Apple TV+ captures only 0.2% of TV viewership in the U.S., attracting far fewer viewers in a month than Netflix does in just a single day. The platform has encountered difficulties in growing its subscriber base.
While Apple’s streaming service challenges are not a major concern for the company, given that streaming is not central to its business model, the era of unchecked spending may soon be coming to an end. The company has shown signs of this shift by hesitating to renew shows for third seasons.
Apple TV+ stands out as the last prominent streaming platform without an advertising tier, a situation that may soon change following the acquisition of ad executive Joseph Cady from NBCUniversal earlier this year.