Apple is reportedly reassessing its strategy for Apple TV+ after spending an astonishing $20 billion on original content that many viewers may not recognize.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, about reducing production budgets. The two executives have indicated that the platform aims to move away from its image as the largest spender in the industry.
The company has made significant investments in various projects, including $250 million for the miniseries “Masters of Air,” which garnered little attention despite its release this year. Additionally, Apple has spent over $500 million on films directed by renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these massive expenditures, Apple TV+ holds only 0.2% of the television viewership market in the United States, attracting fewer monthly views than Netflix does in just 24 hours. The platform is also facing challenges in growing its subscriber base.
However, Apple seems unconcerned about the struggles of its streaming service, as streaming is not central to its overall business model. Nevertheless, the era of unrestricted spending may be coming to an end, as shown by the company’s hesitance to renew shows for a third season, as highlighted by Bloomberg’s findings.
Apple TV+ remains the only significant streaming service without an advertising tier, although that is expected to change following the hire of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.