Apple is reassessing its approach to Apple TV+ after spending an eye-popping $20 billion on original content that has often gone unnoticed by viewers. According to reports, Apple executive Eddy Cue has engaged in discussions with studio heads Zack Van Amburg and Jamie Erlicht about cutting back on production budgets. The team appears to be eager to distance the platform from its image as the industry’s largest spender.
Among the significant investments made by Apple was a $250 million expenditure for the miniseries “Masters of Air,” which underwhelmed in viewer response upon its release this year. Additionally, the company has invested over $500 million on films helmed by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these vast financial commitments, Apple TV+ holds only a 0.2% share of TV viewership in the United States, garnering fewer views in a month than Netflix attracts in a single day. The streaming service has also faced challenges in growing its subscriber base.
While Apple has not shown alarm over these hurdles—likely because streaming is not a primary focus of its business strategy—it appears to be moving away from its previous model of unlimited spending. This shift is indicated by the company’s reluctance to renew series for third seasons, as highlighted by recent data.
Currently, Apple TV+ stands out as the last major streaming service without an advertisement-supported tier. However, this may soon change following the recruitment of Joseph Cady, a former NBCUniversal advertising executive, earlier this year.