Apple is reassessing its strategy for Apple TV+ after reportedly investing an astonishing $20 billion in original content that many viewers may not recognize.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about controlling production budgets. The duo is said to be communicating that Apple TV+ aims to move away from its image as the industry’s largest spender.
The tech giant has made significant financial commitments for various projects, including $250 million for the miniseries “Masters of Air,” which saw minimal viewer engagement upon release. Furthermore, Apple has invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial expenditures, Apple TV+ captures only 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix does in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While the issues facing Apple TV+ do not seem to concern Apple, as streaming is not central to its business operations, the company appears to be signaling a shift away from unlimited spending. This change is reflected in its hesitance to renew shows for multiple seasons, based on Bloomberg’s findings.
Notably, Apple TV+ is currently the only major streaming service without an advertising tier. However, this may soon change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.