Apple is rethinking its approach to Apple TV+ after reportedly spending an immense $20 billion on original content that many viewers are unfamiliar with. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets in a bid to change the platform’s image as the industry’s largest spender.
The company has invested heavily in productions, including $250 million for the miniseries “Masters of Air,” which underperformed upon release. Additionally, over $500 million has been spent on films from renowned directors, including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this significant financial outlay, Apple TV+ has managed to capture only 0.2% of television viewership in the United States, receiving far fewer views in a month than Netflix attracts in just one day. It has also faced challenges in growing its subscriber base.
While Apple’s core business does not rely heavily on streaming services, signs indicate that its era of unfettered spending may be coming to an end. This shift is evidenced by the company’s hesitance to renew shows for third seasons. As Apple TV+ remains the final major streaming platform without an ad-supported tier, this too could see a transformation following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.