Apple is reassessing its spending strategy for Apple TV+ after investing around $20 billion in original content, much of which remains relatively unknown to audiences.
According to a report from Bloomberg, Apple executive Eddy Cue has been in discussions with the heads of Apple TV+, Zack Van Amburg and Jamie Erlicht, about tightening budgets. The duo has reportedly indicated that the streaming service aims to improve its image as the largest spender in the industry.
Apple has made significant financial commitments, such as the $250 million spent on the miniseries “Masters of Air,” which failed to achieve notable success upon its release this year. Additionally, the company has invested over $500 million in films directed by high-profile filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its significant investments, Apple TV+ holds a mere 0.2% share of TV viewership in the United States, receiving fewer views in a month than Netflix gathers in just one day. The service has faced challenges in growing its subscriber base.
Although Apple does not view streaming as central to its business, the company is signaling a shift away from unlimited spending, as evidenced by its hesitance to renew shows for third seasons. Furthermore, Apple TV+ is currently the only major streaming service without an advertising tier, which may soon change following the hiring of Joseph Cady, a former NBCUniversal ad executive, earlier this year.