Apple is reassessing its substantial spending on original content for Apple TV+, reportedly investing around $20 billion without achieving significant viewer engagement. According to Bloomberg, the company is looking to adopt a new strategy as it recognizes that many of its productions have gone largely unnoticed.
Eddy Cue, an Apple executive, has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about controlling expenses. Their aim is to alter the platform’s reputation as the industry’s highest spender.
Apple’s significant expenditures include $250 million for the miniseries “Masters of the Air,” which received minimal attention upon its release. Additionally, the company has invested over $500 million in films from notable directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ captures only 0.2% of U.S. TV viewership, drawing fewer viewers in a month than Netflix attracts in just a single day. Subscriber growth has also been a challenge.
Although streaming is not a central component of Apple’s overall business, the company appears to be shifting away from its unlimited spending approach, as indicated by a growing hesitance to renew shows for additional seasons.
Apple TV+ remains the final major streaming platform without an advertising tier, a situation likely to change following the appointment of Joseph Cady, a former NBCUniversal advertising executive, earlier this year.