Apple is reportedly reevaluating its approach to Apple TV+ after investing an astonishing $20 billion in original content. The company aims to reduce spending on lesser-known TV shows and movies that have not gained significant traction.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to tighten budgets. The leadership is focused on changing the streaming service’s image as the industry’s top spender.
This year, Apple invested $250 million in the miniseries “Masters of Air,” which did not attract much viewer interest. Additionally, the service has spent over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its significant investments, Apple TV+ holds a mere 0.2% of TV viewership in the United States, garnering fewer views in a month than Netflix attracts in just one day. The platform has also faced challenges in growing its subscriber base.
Although streaming is not a central component of Apple’s business model, the company appears to be shifting away from its previously unrestricted spending practices. This change is reflected in its reluctance to renew shows for third seasons.
Furthermore, Apple TV+ is currently the only major streaming service lacking an ad-supported tier, a situation that is expected to change following the hiring of Joseph Cady, a former NBCUniversal ad executive, earlier this year.