Apple is reconsidering its substantial spending on original content for Apple TV+, reportedly having invested around $20 billion. The company is now looking to adjust its approach, as executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about managing budgets and improving the platform’s reputation as a high-spender.
This extensive budget has led to significant expenditures, such as the $250 million on the miniseries “Masters of Air,” which failed to create much buzz upon its release. Additionally, Apple has allocated over $500 million for films produced by notable directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this investment, Apple TV+ has managed to capture only 0.2% of television viewership in the US, falling far behind competitors like Netflix, which garners more views in a single day than Apple TV+ does in a month. The platform has also faced challenges in attracting new subscribers.
Although Apple does not prioritize streaming as a core aspect of its business, it appears to be moving away from its previously unlimited spending habits. This shift is reflected in its recent hesitance to renew shows for third seasons, according to industry sources.
Currently, Apple TV+ remains the only major streaming service without an ad-supported tier. However, this might change soon, as the company has hired ad executive Joseph Cady from NBCUniversal this year, indicating a potential shift in its subscription strategy.