Apple is reportedly reevaluating its spending strategy for Apple TV+, having invested around $20 billion in original content to date, much of which viewers are unlikely to recognize or have seen.
According to a Bloomberg report, Apple executive Eddy Cue has been discussing budget constraints with studio heads Zack Van Amburg and Jamie Erlicht. The duo has conveyed that the streaming service aims to move away from its image as the largest spender in the industry.
Among its expensive investments, Apple allocated $250 million for the miniseries “Masters of Air,” which premiered this year but failed to gain significant attention. The company has also invested over $500 million in films from acclaimed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this considerable financial commitment, Apple TV+ holds a mere 0.2% share of TV viewership in the United States, receiving fewer views in one month than Netflix attracts in just one day. The streaming service has faced challenges in growing its subscriber base.
However, Apple does not appear overly concerned about these streaming challenges, as it remains a secondary focus compared to its main business. Nevertheless, signs suggest that the company is moving towards tighter budget controls, as indicated by its reluctance to renew shows for third seasons, according to Bloomberg data.
Notably, Apple TV+ stands out as the only major streaming service without an advertisement-based tier, a situation that may change following the recent hiring of ad executive Joseph Cady from NBCUniversal.