Apple is reassessing its approach to its streaming service, Apple TV+, after reportedly spending around $20 billion on original content, much of which has not resonated with audiences. According to reports, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to reduce budgets and move away from being perceived as the industry’s highest spender.
The company has invested heavily in productions, such as the $250 million it allocated for the miniseries “Masters of Air,” released this year but failing to gain significant traction. Additionally, Apple has spent over $500 million on films by notable directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial investments, Apple TV+ holds only 0.2% of television viewership in the United States, attracting fewer views in a month than Netflix receives in a single day. Subscriber growth has also been a challenge.
Although these setbacks have not caused major concern for Apple, given that streaming is not central to its business model, the company seems to be shifting away from unrestricted spending. This change is further indicated by its hesitance to renew shows for third seasons. Furthermore, Apple TV+ currently remains the only major streaming platform without an advertising tier, a situation that may evolve following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.