Apple is reassessing its spending on television and film content as it has reportedly invested around $20 billion in original programming, much of which has not gained significant recognition.
According to sources, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets for Apple TV+. The studios have expressed a desire to change the platform’s perception as the largest spender in the industry.
The company has made significant investments in projects, including $250 million on the miniseries “Masters of Air,” which failed to attract a large audience upon its release. Moreover, Apple has spent over $500 million on films from acclaimed directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its extensive expenditures, Apple TV+ holds only 0.2% of television viewership in the U.S., receiving fewer views in a month than Netflix achieves in a single day. Additionally, it has faced challenges in growing its subscriber base.
While Apple does not seem overly concerned about the platform’s issues, given that streaming is not a primary focus of its business, the company appears to be curbing its expansive spending approach. This shift is reflected in its hesitance to renew shows for a third season.
Notably, Apple TV+ is the last major streaming service without an advertisement-supported tier, a situation that may soon change following the recruitment of Joseph Cady, an ad executive from NBCUniversal.