Apple is reassessing its strategy for Apple TV+ after reportedly spending around $20 billion on original content. This review comes amid concerns about the effectiveness of their spending, particularly as many of their shows and movies have gone largely unnoticed by audiences.
According to reports, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. They aim to shift away from Apple TV+’s image as the biggest spender in the streaming industry.
The company has invested significantly in content, including a notable $250 million on the miniseries “Masters of Air,” which struggled to gain traction upon release. Additionally, Apple has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ holds a mere 0.2% share of television viewership in the US, garnering fewer views in an entire month than Netflix receives within a single day. The platform has faced challenges in growing its subscriber base.
While Apple does not rely heavily on streaming as part of its core business, the tech giant appears to be scaling back its spending, evident in its hesitance to renew shows for third seasons. Moreover, Apple TV+ remains the last major streaming service without an advertising tier, a situation likely to change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.