Apple is reassessing its spending strategy for Apple TV+, recognizing that it has invested heavily in original content, with reports indicating a staggering $20 billion spent on shows and movies that many viewers may not have seen or heard of.
According to sources, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to curtail the budgets for future projects. The aim is to reshape the platform’s image as it strives to move away from being labeled as the industry’s biggest spender.
The company has reportedly invested significant sums on various productions, including $250 million for the miniseries “Masters of Air,” which debuted this year but failed to generate significant viewership. Additionally, over $500 million was spent on films directed by notable filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this considerable investment, Apple TV+ only captures about 0.2% of U.S. TV viewership, with monthly views lagging far behind Netflix, which often achieves more views in just 24 hours than Apple TV+ receives in a month. The service has also faced challenges in growing its subscriber base.
However, the streaming service’s struggles seem not to concern Apple much, given that streaming isn’t central to its business model. Nevertheless, indications suggest that its days of unrestricted spending are coming to an end, especially evident in its reluctance to renew shows for third seasons.
Currently, Apple TV+ stands out as the only major streaming service without an ad-supported tier, a situation that appears likely to change following the recent hiring of Joseph Cady, a former advertising executive from NBCUniversal.