Apple is reassessing its strategy for Apple TV+ after investing an immense $20 billion in original content, according to a Bloomberg report. The company aims to reduce its expenditures on shows and films that have garnered minimal public attention.
Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets. The leadership wants to shift the platform’s image away from being seen as the largest spender in the industry.
The tech giant has invested heavily in various projects, including $250 million on the miniseries “Masters of Air,” which struggled to gain traction upon its release. Additionally, Apple has poured over $500 million into films by prominent directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these significant investments, Apple TV+ only accounts for 0.2% of television viewership in the U.S., attracting fewer viewers in a month than Netflix does in just one day. The service has also faced challenges in boosting its subscriber numbers.
While these issues have not caused major concern within Apple, as streaming is not central to its business model, the company appears to be moving away from unlimited spending. This is reflected in its hesitance to renew shows for a third season, based on data from Bloomberg.
Currently, Apple TV+ remains the only leading streaming service without an advertising tier, a situation that could change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.