Apple is re-evaluating its strategy for Apple TV+ as it faces scrutiny over its significant spending on original content, which has reached $20 billion according to reports from Bloomberg. The company is looking to take a more measured approach after executive Eddy Cue held discussions with studio leaders Zack Van Amburg and Jamie Erlicht about trimming budgets.
Apple has gained a reputation as the biggest spender in the industry, having invested heavily in projects such as the $250 million miniseries “Masters of Air,” which struggled to gain traction upon its release. Moreover, it has poured over $500 million into films directed by renowned filmmakers including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ accounts for only 0.2% of television viewership in the U.S., garnering less audience engagement in a month than what Netflix achieves in just one day. The service has also faced challenges in boosting its subscriber count.
Although streaming is not a primary focus for Apple, the company’s vast expenditures on Apple TV+ are expected to diminish, as indicated by its hesitation to renew shows for third seasons, according to Bloomberg’s analysis. Additionally, Apple TV+ remains the last major streaming platform without an advertising tier, a situation that may soon change following the hiring of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.