Apple is reassessing its strategy for Apple TV+ after investing around $20 billion in original content, which hasn’t gained significant traction. According to reports, Apple executive Eddy Cue has been in discussions with studio chiefs Zack Van Amburg and Jamie Erlicht about reducing budgets. They aim to alter the platform’s image as the biggest spender in the industry.
Apple has made substantial investments in productions, including $250 million for the miniseries “Masters of Air,” which has not performed well. The platform has also spent over $500 million on films by acclaimed directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this heavy financial outlay, Apple TV+ holds just 0.2% of television viewership in the U.S. and struggles to keep pace with Netflix, which garners more views in just a single day than Apple TV+ does in an entire month. Subscriber growth has also been a challenge for the service.
While Apple is not primarily focused on streaming, the company appears to be drawing back on its unrestricted spending, as evidenced by its hesitance to renew shows for third seasons. Additionally, Apple TV+ is currently the only major streaming service without an advertising tier, but this may change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.