Apple is reassessing its strategy for Apple TV+ after reportedly spending an astonishing $20 billion on original content, much of which has gone unnoticed by audiences.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. It has been suggested that the streaming service aims to move away from its image as the industry’s biggest spender.
The company has invested heavily in projects like the $250 million miniseries “Masters of Air,” which premiered this year but received minimal attention. Additionally, over $500 million has been directed toward films by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial investments, Apple TV+ holds merely 0.2% of the U.S. TV viewership market, attracting fewer viewers in a month than Netflix does in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While Apple has not shown significant concern over its streaming service, as it is not central to its overall business model, it appears to be curtailing its unlimited spending approach. This shift is evident in its reluctance to approve renewals for third seasons of shows, according to Bloomberg’s findings.
Currently, Apple TV+ is the last major streaming service without an advertising tier. However, changes may be on the horizon following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.