Apple is reassessing its spending on original content for Apple TV+, having reportedly invested around $20 billion on shows and movies that have received little attention. According to Bloomberg, Apple executive Eddy Cue has engaged in discussions with studio heads Zack Van Amburg and Jamie Erlicht about scaling back their budgets. The studio leaders have indicated a desire to distance the platform from its image as the largest spender in the industry.
Apple has invested significantly in projects, including a $250 million budget for the miniseries “Masters of the Air,” which did not resonate with viewers upon its release. Additionally, over $500 million has been allocated to films directed by notable filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the substantial financial outlay, Apple TV+ commands only 0.2% of television viewership in the United States, attracting far fewer viewers in a month compared to Netflix’s single-day audience. The platform has also faced challenges in boosting its subscriber base.
While Apple does not prioritize streaming as a core business segment, it appears to be curtailing its unrestricted spending habits. This shift is becoming evident as the company is less inclined to renew shows for third seasons, as per Bloomberg’s findings. Furthermore, Apple TV+ notably remains the only major streaming service without an advertising tier, a situation likely to change following the recent hiring of ad executive Joseph Cady from NBCUniversal.