Apple is reevaluating its strategy for Apple TV+ after investing around $20 billion in original content that many viewers may not recognize.
According to reports, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets for future projects. The aim is to shift away from the perception that Apple is the highest spender in the industry.
The company has made significant investments in productions, such as its $250 million miniseries “Masters of Air,” which was launched this year but failed to gain much attention. Additionally, over $500 million has been allocated for films by renowned directors including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these financial commitments, Apple TV+ holds a mere 0.2% of television viewership in the US, attracting far fewer viewers in a month compared to Netflix’s daily numbers. The platform has also faced challenges in growing its subscriber base.
Although streaming is not central to Apple’s overall business, the company appears to be moving towards curbing its spending. This shift is evidenced by its hesitance to renew shows for third seasons, based on recent data. Furthermore, Apple TV+ remains the only major streaming service without an advertising tier; however, this could change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.