Apple is reassessing its strategy for Apple TV+ after reportedly spending around $20 billion on original content, much of which has gone largely unnoticed by audiences.
According to Bloomberg, discussions are underway between Apple executive Eddy Cue and the platform’s studio heads, Zack Van Amburg and Jamie Erlicht, about reducing production budgets. There are indications that the service aims to move away from its image as the biggest spender in the industry.
Apple’s spending spree includes significant investments such as $250 million for the miniseries “Masters of Air,” which failed to gain much traction upon release. The company has also invested over $500 million in films directed by prominent filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these expenditures, Apple TV+ holds only 0.2% of TV viewership in the United States, attracting fewer viewers in a month than Netflix does in just 24 hours. Additionally, the platform has struggled to grow its subscriber base.
While the streaming service’s challenges have not raised alarms within Apple, given that streaming is not a primary focus of its business, the company seems to be indicating a shift away from unrestricted spending. This is reflected in its hesitance to renew shows for third seasons, as reported by Bloomberg.
Notably, Apple TV+ remains the only major streaming platform without an ad-supported tier, although this may change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.