Apple is recognizing that its significant expenditure on original television shows and movies may not be yielding the anticipated results. According to reports, the tech giant has invested around $20 billion into Apple TV+, prompting discussions among executives on reassessing their financial commitments to content production.
Executive Eddy Cue has reportedly engaged with studio heads Zack Van Amburg and Jamie Erlicht to discuss strategies for tightening budgets. The duo is working to shift the platform’s reputation away from being labeled as the largest spender in the industry.
Apple’s lavish spending includes $250 million on the miniseries “Masters of Air,” which premiered this year with minimal viewer engagement. Additionally, the company has invested over $500 million in projects from acclaimed filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these hefty investments, Apple TV+ only claims about 0.2% of the U.S. television viewership, garnering fewer monthly views than Netflix does in just a single day. Moreover, the platform has faced challenges in attracting new subscribers.
While the streaming service’s struggles have not raised immediate concerns for Apple, as streaming is not central to its overall business model, its era of unrestricted spending appears to be coming to an end. Indications of this shift are evident in the company’s hesitance to renew shows for third seasons.
Apple TV+ currently stands out as the only major streaming service that does not offer an ad-supported tier, but this is likely to change following the hiring of Joseph Cady, a former advertising executive from NBCUniversal, earlier this year.