Apple is reassessing its strategy for Apple TV+ after reportedly investing around $20 billion in original content. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about scaling back budgets. They aim to move away from the image of being the largest spender in the entertainment industry.
The company has made significant financial commitments, including $250 million for the miniseries “Masters of Air,” which debuted this year but failed to gain substantial viewers. Additionally, Apple has invested more than $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these extensive investments, Apple TV+ holds only 0.2% of the television viewership in the United States, attracting far fewer viewers in a month than Netflix does in just 24 hours. Subscriber growth has also been a challenge for the platform.
Although Apple does not prioritize streaming as a core part of its business, it appears the era of unlimited spending may be coming to an end. The company has indicated a shift by being cautious about renewing shows for third seasons.
Notably, Apple TV+ remains the only major streaming service without an advertisement-supported tier. However, this may soon change, as the company recently hired advertising executive Joseph Cady from NBCUniversal.