Apple is reassessing its strategy for Apple TV+ after reportedly spending around $20 billion on original content, much of which has received minimal exposure. According to Bloomberg, executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about controlling production budgets. They are looking to shift away from being labeled as the industry’s highest spender on shows and films.
The company has made significant financial commitments, such as the $250 million investment in the miniseries “Masters of Air,” which did not achieve notable success upon its release this year. Additionally, Apple has invested over $500 million in films from acclaimed directors including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this heavy investment, Apple TV+ holds a mere 0.2% share of U.S. television viewership, attracting fewer viewers in a month than Netflix secures in just 24 hours. The service has faced challenges in boosting its subscriber numbers.
While streaming is not a primary focus for Apple, the company’s significant expenditures appear to be waning, evident from its hesitance to renew shows for third seasons, as noted by Bloomberg. Moreover, Apple TV+ currently stands out as the only major streaming platform without an ad-supported subscription tier, a situation likely to change following the hiring of Joseph Cady, a former advertising executive from NBCUniversal, earlier this year.