Apple Inc. is reassessing its spending on original content for its streaming service, Apple TV+, after reportedly investing around $20 billion in shows and movies that have gone largely unnoticed by audiences. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about controlling budgets and moving away from the perception of being the industry’s biggest spender.
The company has made sizable investments in productions, such as the $250 million for the miniseries “Masters of Air,” which saw minimal impact despite its high budget. Apple has also expended over $500 million on films directed by prominent filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this considerable financial commitment, Apple TV+ captures just 0.2% of television viewership in the United States, receiving fewer overall views in a month than Netflix does within a single day. The service has faced challenges in boosting its subscriber base.
While Apple is not overly concerned about these issues, as streaming does not constitute its primary business focus, it appears to be moving away from unrestricted spending. This shift is evidenced by a reluctance to renew certain shows for third seasons. Notably, Apple TV+ is the only major streaming platform without an ad-supported tier, a situation that may soon change following the recent hiring of Joseph Cady, a former ad executive at NBCUniversal.