Apple is reassessing its investment strategy for Apple TV+ after reportedly spending around $20 billion on original content, much of which has gone unnoticed by audiences. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Er Licht to tighten budgets. They have indicated a desire for the platform to move away from its current status as the largest spender in the streaming industry.
The company has made significant financial commitments to various projects, including $250 million on the miniseries “Masters of Air,” which failed to attract viewers upon its release this year. Additionally, Apple has invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its extensive spending, Apple TV+ holds just 0.2% of total TV viewership in the United States, attracting fewer viewers in a month than Netflix does in just one day. The platform has also struggled to gain a substantial subscriber base.
While Apple’s streaming service challenges have not raised significant concerns for the tech giant—given that streaming is not its primary business focus—the era of unrestricted spending may be coming to an end. This shift has already been reflected in the company’s hesitance to renew shows for third seasons, as reported by Bloomberg data.
Notably, Apple TV+ remains the only major streaming service without an advertising tier, but this could change following the recent hiring of Joseph Cady, a former ad executive from NBCUniversal.