Apple is reassessing its strategy for Apple TV+ after reportedly investing a staggering $20 billion in original content. According to Bloomberg, Apple executive Eddy Cue has been meeting with studio heads Zack Van Amburg and Jamie Erlicht to discuss budget management. The team is aiming to change the streamer’s image as the largest financial spender in the industry.
The tech giant has made significant investments in productions, including $250 million for the miniseries “Masters of Air,” which garnered minimal audience interest upon release. It has additionally spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its hefty expenditures, Apple TV+ holds a mere 0.2% share of television viewership in the United States, attracting fewer monthly viewers than Netflix does within just a day. The platform has also faced challenges in boosting its subscriber base.
Although the streaming service is not a central component of Apple’s business model, the company’s trend of unlimited spending is reportedly coming to an end. This is evidenced by its hesitance to renew shows for third seasons, as indicated by industry data.
Apple TV+ is currently the last major streaming service that does not offer an ad-supported tier, a situation likely to change following the recent hiring of Joseph Cady, an ad executive from NBCUniversal.