Apple is reevaluating its approach to content on Apple TV+ following significant spending on original programming that many viewers may not recognize. Reports suggest the tech giant invested around $20 billion on new shows and films, but has not seen the desired audience engagement.
Executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about controlling budgets, aiming to transform the platform’s image from being the biggest spender in the industry. Despite major investments, including $250 million for the miniseries “Masters of Air,” which received minimal attention, and over $500 million on projects from renowned directors like Martin Scorsese, Apple TV+ struggles with only 0.2% of U.S. TV viewership. Its viewership rate pales in comparison to Netflix, which garners more views in 24 hours than Apple TV+ does in a month.
While Apple’s streaming service faces challenges in subscriber growth, the company does not appear overly concerned, as streaming is not a primary focus of its business model. However, the trend of unlimited spending may be coming to an end, evidenced by the company’s hesitancy to renew certain shows for third seasons.
Moreover, Apple TV+ remains the only major streaming platform without an advertising tier, a situation that may soon change with the recent hiring of Joseph Cady, a former ad executive from NBCUniversal.