Apple is reportedly re-evaluating its spending strategy for Apple TV+, having invested approximately $20 billion in original content, much of which has not garnered significant attention. According to a Bloomberg report, Apple executive Eddy Cue has been engaged in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about trimming budgets as part of an effort to move away from being viewed as the industry’s largest spender.
The company has made significant investments in productions, such as the $250 million miniseries “Masters of Air,” which premiered this year but failed to generate substantial interest. Additionally, Apple has spent over $500 million on films from high-profile directors including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this hefty investment, Apple TV+ commands a mere 0.2% of television viewership in the US, receiving fewer views in a single month than Netflix achieves in just a day. The service has also faced challenges in growing its subscriber base.
While Apple remains largely unconcerned about its streaming platform due to its core business interests lying elsewhere, indications suggest that the company may be transitioning away from unlimited spending. This shift is further illustrated by its hesitance to renew shows for a third season.
Notably, Apple TV+ stands out as the last major streaming service without an advertising tier, a situation that is expected to change following the recent hiring of Joseph Cady, a former NBCUniversal advertising executive.