Apple is reevaluating its approach to Apple TV+ after reportedly spending an astounding $20 billion on original content, much of which remains largely unseen by audiences.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets. The studio chiefs have reportedly indicated a desire to move away from being labeled as the industry’s largest spender.
The company has invested significantly in high-profile projects, such as the $250 million miniseries “Masters of Air,” which debuted this year with minimal impact. Additionally, it has allocated over $500 million for films directed by acclaimed filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ holds only 0.2% of TV viewership in the United States, attracting fewer views in a month than Netflix garners in just 24 hours. The platform has also faced challenges in attracting new subscribers.
While Apple appears unconcerned about the performance of its streaming service, as it is not a primary focus of its business, its era of unrestricted spending may be coming to an end. This shift is evident in the company’s hesitation to renew series for third seasons.
Notably, Apple TV+ remains the only major streaming platform without an ad-supported tier, although this may change following the recent hiring of ad executive Joseph Cady from NBCUniversal.