Apple is reassessing its strategy for Apple TV+ after reportedly spending around $20 billion on original content that hasn’t gained significant audience attention. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio leaders Zack Van Amburg and Jamie Erlicht about scaling back production budgets. The goal is to change the perception that Apple TV+ is the biggest spender in the industry.
The company has invested heavily in high-profile projects, such as $250 million for the miniseries “Masters of Air,” released with little audience engagement. Additionally, Apple has spent over $500 million on films from renowned directors including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ holds just 0.2% of TV viewership in the United States, garnering fewer monthly views than Netflix receives in a single day. The platform’s struggle to grow its subscriber base has not caused significant concern for Apple, given that streaming is not central to its primary business. However, signs indicate a potential shift away from unlimited spending, as reflected in the company’s hesitance to renew shows for third seasons.
Apple TV+ currently stands out as the only major streaming service without an advertising-supported tier. Changes in this area may be forthcoming, particularly since the hiring of advertising executive Joseph Cady from NBCUniversal earlier this year.