Apple is reportedly reevaluating its approach to its streaming service, Apple TV+, after investing approximately $20 billion in original content. According to Bloomberg, Apple executive Eddy Cue has been discussing budget constraints with studio heads Zack Van Amburg and Jamie Erlicht, indicating a desire to reduce spending and change the platform’s perception as the largest spender in the industry.
The company has made significant financial commitments to productions, such as the $250 million investment in the miniseries “Masters of Air,” which saw disappointing viewership after its release. Additionally, over $500 million has been spent on films by renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the heavy investments, Apple TV+ commands a mere 0.2% of TV viewership in the United States, achieving fewer views in a month than Netflix garners in just 24 hours. The service has also encountered challenges in subscriber growth.
Although Apple TV+’s struggles haven’t raised major concerns for the tech giant—since streaming is not a primary focus of its business—the company appears to be shifting away from its previously unlimited spending strategy. This change is reflected in its hesitance to renew shows for third seasons.
Notably, Apple TV+ is the last significant streaming service yet to introduce an advertising tier, a situation that may soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.