Apple is reconsidering its strategy for Apple TV+ after spending an astonishing $20 billion on original content, according to a report from Bloomberg. The company recognizes that it has invested heavily in shows and movies that have not gained significant public attention.
Executives Eddy Cue, Zack Van Amburg, and Jamie Erlicht have been discussing ways to manage budgets more effectively, aiming to change the streamer’s image as the industry’s largest spender. This follows pricey investments such as the $250 million spent on the miniseries “Masters of Air,” which failed to make an impact upon its release.
In addition, Apple has allocated over $500 million for projects from renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn. However, despite this substantial investment, Apple TV+ holds only 0.2% of U.S. TV viewership, receiving fewer views in a month than Netflix averages in just one day. The platform has also faced challenges in attracting new subscribers.
Although Apple TV+ has not become a central focus for the tech company, it appears that the era of unrestricted spending may be coming to an end. This hints at a shift in strategy, as indicated by the reluctance to renew some shows for third seasons.
Notably, Apple TV+ is currently the only major streaming service lacking an ad-supported tier. This could change soon, as the company recently hired Joseph Cady, a former ad executive from NBCUniversal, which suggests a new direction may be on the horizon.