Apple is reassessing its spending on original content for its streaming service, Apple TV+, after reportedly investing around $20 billion on shows and movies that have not gained significant audience attention.
According to reports, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht regarding tighter budget control. The team reportedly recognizes the need to move away from being labeled as the industry’s largest spender.
Apple has made substantial investments in various productions, including a notable $250 million for the miniseries “Masters of Air,” which has failed to generate considerable interest since its release. Additionally, the company has spent over $500 million on films from acclaimed directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these enormous expenditures, Apple TV+ holds only a 0.2% share of television viewership in the United States and attracts significantly fewer views in a month compared to streaming giant Netflix, which can achieve such numbers within just 24 hours. The service has also faced challenges in growing its subscriber base.
While Apple’s streaming issues do not seem to be a major concern for the tech giant, as streaming is not a primary focus of its business, the trend of unrestricted spending may soon come to an end. This shift is already evidenced by the company’s hesitance to renew shows for third seasons, as noted by industry data.
Currently, Apple TV+ stands out as the only major streaming service without an advertising tier. However, this may soon change following the recent hiring of advertising executive Joseph Cady from NBCUniversal.