Apple TV+ at a Crossroads: Will Spending Cuts Change the Streaming Game?

Apple is reconsidering its spending on original content for Apple TV+ after investing a staggering $20 billion on shows and movies, many of which have been largely unnoticed by viewers. According to a Bloomberg report, executive Eddy Cue is in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets as the platform seeks to change its image as the highest spender in the industry.

Significant expenditures have included $250 million for the miniseries “Masters of Air,” released this year with minimal impact. Additionally, Apple has invested over $500 million in films by renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.

Despite these massive investments, Apple TV+ accounts for only 0.2% of TV viewership in the United States, attracting far fewer views in a month than Netflix does in just 24 hours. The platform has also faced challenges in subscriber growth.

While the tech giant appears unfazed by Apple TV+’s struggles since streaming is not central to its business, signs indicate that its era of unrestricted spending may be coming to an end. This is reflected in the company’s hesitation to renew shows for third seasons. Notably, Apple TV+ remains the only major streaming service without an advertisement-supported option, a situation that may change following the hiring of advertising executive Joseph Cady from NBCUniversal earlier this year.

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