Apple is re-evaluating its approach to Apple TV+ after reportedly spending around $20 billion on original content, much of which has gone unnoticed by viewers. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets, as the platform aims to overcome its image as the highest spender in the industry.
The tech giant has invested heavily in various shows and movies, including $250 million for the miniseries “Masters of Air,” which saw minimal impact upon release. Apple has also invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn. However, despite this significant outlay, Apple TV+ accounts for just 0.2% of television viewership in the United States, gathering fewer views in a month than Netflix does in a single day. Furthermore, Apple has faced challenges in growing its subscriber base.
Although Apple has shown little concern regarding the issues facing Apple TV+, given that streaming isn’t central to its business model, it appears that the era of unrestricted spending is coming to an end. The company has indicated its intention to be cautious with renewals for third seasons of existing shows, as reported by Bloomberg.
Notably, Apple TV+ is currently the only major streaming service lacking an advertisement-supported tier, but this could change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.