Apple is reportedly rethinking its strategy for Apple TV+ after spending an astonishing $20 billion on original content, a figure that has drawn attention to the platform’s lackluster viewership. According to Bloomberg, Apple executive Eddy Cue has been in discussions with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, about reducing production budgets. They have indicated a desire to move away from being perceived as the leading spender in the industry.
Apple’s substantial financial commitments include $250 million for the recently released miniseries “Masters of Air,” which has not garnered significant audience interest. Furthermore, the company has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ holds only 0.2% of TV viewership in the United States, with fewer monthly views than Netflix receives in just one day. The platform has also faced challenges in attracting new subscribers.
While Apple has not shown significant concern over the struggles of its streaming service, given that streaming is not a primary focus of its business, the era of unrestricted spending appears to be coming to an end. This shift is hinted at by the company’s reluctance to renew shows for third seasons.
Notably, Apple TV+ is currently the only major streaming service without an advertising tier, a situation that may soon change. Earlier this year, the company brought on Joseph Cady, an advertising executive from NBCUniversal, which could signal a move towards monetizing the platform through ads.