Apple is reassessing its strategy for Apple TV+ after reportedly investing $20 billion in original content, much of which has gone unnoticed by audiences. According to Bloomberg, Apple executive Eddy Cue has engaged with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, to discuss reducing production budgets. The executives have indicated a desire to change the platform’s perception as the largest spender in the industry.
Noteworthy expenditures include $250 million on the miniseries “Masters of Air,” which garnered minimal attention upon release. Additionally, Apple has invested over $500 million in films from high-profile directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these immense financial commitments, Apple TV+ commands only 0.2% of television viewership in the US, falling significantly short when compared to competitors like Netflix. The platform has also faced challenges in subscriber growth.
Although the issues at Apple TV+ have not caused major concern for Apple, as streaming is not central to its overall business model, indications suggest that the era of unrestricted spending may be coming to an end. This shift is evident in its reluctance to renew shows for third seasons, according to data from Bloomberg.
Notably, Apple TV+ remains the only major streaming service without an advertising tier, a situation likely to change following the hiring of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.