Apple is reevaluating its strategy for Apple TV+ after investing approximately $20 billion in original content, which has not garnered significant viewer engagement. According to reports, Apple executive Eddy Cue has been discussing cost management with the service’s studio heads, Zack Van Amburg and Jamie Erlicht, as they aim to change the perception of Apple TV+ as the biggest spender in the streaming industry.
The company has made considerable investments in various projects, including $250 million for the miniseries “Masters of Air,” released this year but received little viewer interest. Additionally, it has spent over $500 million on films directed by high-profile filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these expenditures, Apple TV+ captures only 0.2% of television viewership in the United States, with its monthly audience being significantly smaller than Netflix’s viewership within just 24 hours. The service has also faced challenges in subscriber growth.
Even though streaming is not Apple’s primary focus, the trend of unrestricted spending will likely come to an end. The company has already indicated this shift by hesitating to renew some shows for a third season. Currently, Apple TV+ remains the only major streaming service without an ad-supported option, which may soon change following the hiring of advertising executive Joseph Cady from NBCUniversal earlier this year.