Apple is reassessing its strategy for Apple TV+ after investing around $20 billion in original content, according to a report by Bloomberg. The company has acknowledged that it is spending excessively on shows and movies that may not be widely recognized, prompting executive Eddy Cue to engage in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets.
Apple has made significant financial commitments for various productions, including $250 million for the miniseries “Masters of Air,” which received minimal viewer engagement upon its release earlier this year. In addition, the platform has invested over $500 million in films directed by renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this substantial spending, Apple TV+ has only captured 0.2% of TV viewership in the United States, attracting fewer viewers in a month than Netflix does within just 24 hours. The platform has also faced challenges in growing its subscriber base.
While Apple does not consider streaming to be central to its business model, signs indicate that its period of unrestricted spending may come to an end. This shift is evident as the company has shown hesitance in renewing shows for a third season, as detailed by Bloomberg.
Notably, Apple TV+ is the only major streaming service that has yet to introduce an advertising tier. However, this may change following the hiring of Joseph Cady, a former NBCUniversal advertising executive, earlier this year.