Apple is reportedly reassessing its strategy for Apple TV+ after investing approximately $20 billion in original content, much of which may not have gained significant public recognition. According to Bloomberg, Apple executive Eddy Cue has been in discussions with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, regarding budget constraints. The objective is to shed the streamer’s image as the largest spender in the industry.
Massive expenditures have included $250 million on the miniseries “Masters of Air,” which released this year but failed to attract a substantial audience. Additionally, Apple has spent over $500 million on films from notable directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this monumental budget allocation, Apple TV+ has captured only 0.2% of U.S. TV viewership, with its monthly viewing figures trailing far behind those of Netflix, which achieves more views within just 24 hours. Moreover, Apple TV+ has struggled to grow its subscriber base.
The tech giant does not appear overly concerned about the streaming service’s challenges, given that streaming is not central to its overall business model. However, signals indicate that the time for unrestricted spending is coming to an end, as evidenced by its reluctance to renew series for additional seasons.
Notably, Apple TV+ is currently the only major streaming platform that does not offer an ad-supported tier. This is likely to change, as the company recently recruited Joseph Cady, an advertising executive from NBCUniversal, earlier this year.