Apple is reevaluating its spending on original content for Apple TV+, acknowledging that it has invested heavily in shows and movies that many viewers may not be familiar with. The tech giant has reportedly spent around $20 billion on original programming, sparking discussions among executives about budget limitations.
Bloomberg has revealed that Eddy Cue, an Apple executive, is in discussions with studio heads Zack Van Amburg and Jamie Erlicht regarding strategies to reduce expenditures. The goal appears to be shifting away from the perception that Apple is the largest spender in the industry. For example, the company invested $250 million in the miniseries “Masters of Air,” which launched this year but failed to generate significant interest.
Additionally, Apple has allocated over $500 million for films directed by well-known filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn. Despite this extensive investment, Apple TV+ holds only 0.2% of TV viewership in the United States, garnering fewer total views in a month than Netflix achieves in a single day. The service has also faced challenges in attracting new subscribers.
While Apple has appeared relatively unconcerned about these issues, given that streaming is not central to its overall business strategy, the company’s approach to massive spending may soon change. Indications of this shift include hesitation to renew shows for third seasons.
Notably, Apple TV+ is currently the only major streaming platform without an advertising tier, though this may soon change. The hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year suggests that the company is considering new revenue strategies.