Apple is reconsidering its strategy for Apple TV+ after reportedly spending an astonishing $20 billion on original content. The company is said to be looking to manage budgets more effectively as it seeks to change its image as the biggest spender in the industry.
According to reports, Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about scaling back expenditures. They are allegedly indicating a desire to move away from being known for excessive spending on shows and films.
Apple has invested significant amounts in high-profile projects, such as $250 million for the miniseries “Masters of Air,” which premiered this year but did not gain much traction. The company has also spent over $500 million on films from acclaimed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive spending, Apple TV+ holds only a mere 0.2% share of TV viewership in the United States, receiving fewer views in a month than Netflix garners in just 24 hours. The service has also faced challenges in attracting new subscribers.
While Apple does not appear overly concerned about these issues, as streaming is not a primary focus of its business, it seems the era of limitless spending may be coming to an end. Evidence of this shift includes the company’s reluctance to renew shows for third seasons.
Additionally, Apple TV+ remains the only major streaming service without an advertisement-supported tier, a situation that may soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.