Apple is re-evaluating its approach to Apple TV+ following significant spending on original content. The company reportedly invested $20 billion, focusing on shows and movies that have not gained widespread recognition.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht regarding budget cuts. The initiative aims to change the platform’s image as the biggest spender in the industry.
Apple has allocated substantial funds to various projects, including $250 million for the miniseries “Masters of Air,” which garnered minimal attention upon release. Additionally, over $500 million has been spent on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these expenditures, Apple TV+ holds only 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix does in just one day. The platform has also faced challenges in increasing its subscriber base.
While Apple TV+’s difficulties may not be a significant concern for the tech giant—given that streaming is not a primary focus of its business—the trend of unrestricted spending may soon end. Signs indicate this shift, as the company has been hesitant to renew shows for third seasons.
Additionally, Apple TV+ remains one of the last major streaming platforms without an advertising tier. This may soon change, as the company recently hired Joseph Cady, a former advertising executive from NBCUniversal.