Apple is reevaluating its strategy for Apple TV+, recognizing that it has spent excessively on shows and movies that often go unnoticed by audiences. With a significant investment of approximately $20 billion in original content, the company is reportedly seeking to manage its budgets more effectively.
Bloomberg has detailed that Eddy Cue, an Apple executive, is in discussions with the heads of Apple TV+’s studio, Zack Van Amburg and Jamie Erlicht, to rein in the streaming service’s spending. The goal is to move away from the perception of being the largest financial contributor in the industry.
Noteworthy expenditures include $250 million for the miniseries “Masters of Air,” which debuted this year but failed to gain substantial attention. Additionally, Apple has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these financial commitments, Apple TV+ accounts for only 0.2% of television viewership in the United States, garnering less viewership in a month than Netflix achieves in just 24 hours. The service has also faced challenges in growing its subscriber base.
While the tech giant has not appeared overly concerned about these setbacks—partly because streaming isn’t a primary focus for its business—there are indications that its era of unlimited spending is coming to an end. This is reflected in its hesitance to renew shows for a third season.
Currently, Apple TV+ is the last significant streaming platform without an ad-supported tier. However, changes may be on the horizon following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.