Apple is reassessing its strategy for Apple TV+ after investing a staggering $20 billion in original content, much of which has gone unnoticed by viewers, according to recent reports.
Executives at Apple, including Eddy Cue, have been engaging with studio heads Zack Van Amburg and Jamie Erlicht to discuss budget cuts as the company seeks to redefine its streaming service image, which has been characterized by excessive spending on content.
Significant financial commitments from Apple include $250 million for the miniseries “Masters of Air,” which launched this year but failed to gain traction. The company has also invested over $500 million in films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the heavy financial outlay, Apple TV+ has only captured 0.2% of television viewership in the U.S. Market comparisons reveal that Netflix attracts more viewers within a single day than Apple TV+ does in an entire month. Additionally, the service has faced challenges in growing its subscriber base.
Streaming is not a primary focus for Apple, which may explain the company’s lack of concern over the performance of Apple TV+. However, it appears the era of unrestricted spending may be coming to an end, as indicated by the company’s hesitance to renew shows for additional seasons.
Currently, Apple TV+ is the only major streaming platform without an advertising tier, but this may soon change following the recent hiring of advertising executive Joseph Cady from NBCUniversal.