Apple is reassessing its strategy for Apple TV+ after investing a staggering $20 billion in original content, according to recent reports from Bloomberg. The company has been criticized for funding numerous shows and movies that have not garnered significant viewership.
Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about the need to tighten budgets. Both executives are reportedly working to change the perception that Apple is the highest spender in the industry.
The company has invested massive amounts in projects, such as its $250 million miniseries “Masters of Air,” which failed to gain traction upon release. Additionally, it has spent over $500 million for films involving notable directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ captures only 0.2% of television viewership in the U.S., receiving far fewer views in a month than Netflix obtains within a single day. Apple has also faced challenges in boosting its subscriber base.
While this situation has not raised major concerns for the tech giant—since streaming is not the core of its business—the era of unlimited spending appears to be coming to an end. The company has already indicated this shift by being reluctant to renew shows for third seasons.
Notably, Apple TV+ remains the only major streaming platform without an advertising tier, a situation that may soon change following the recent hiring of ad executive Joseph Cady from NBCUniversal.