Apple is reassessing its strategy for Apple TV+ after investing an enormous $20 billion in original content, many of which are relatively unknown to viewers. According to a report from Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about controlling spending. The studio chiefs have expressed a desire for the streaming service to move away from its reputation as the industry’s biggest spender.
Apple has invested heavily in high-profile projects, including a staggering $250 million for the miniseries “Masters of Air,” which did not achieve significant viewership upon its release this year. Additionally, the company has committed over $500 million to films by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this vast expenditure, Apple TV+ captures only 0.2% of television viewership in the United States, with monthly views that pale in comparison to those of Netflix, which can garner more views in just one day. The service has also encountered challenges in growing its subscriber base.
While Apple does not prioritize streaming as a central part of its business model, signs indicate a shift away from unrestrained spending. This change is reflected in the company’s hesitance to renew shows for third seasons, as reported by Bloomberg data.
Furthermore, Apple TV+ currently stands as the only major streaming platform without an advertising tier, a situation likely to evolve given the recent hiring of Joseph Cady, a former advertising executive from NBCUniversal.