Apple is reevaluating its approach to original content for Apple TV+ after spending approximately $20 billion on shows and movies that many viewers may not recognize. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio chiefs Zack Van Amburg and Jamie Erlicht about reducing budgets for new projects. The studio heads have indicated a desire to change Apple TV+’s perception as the industry’s largest spender on content.
Apple has invested substantial amounts in productions, such as the $250 million miniseries “Masters of Air,” which did not achieve significant viewership upon its release. The company has also spent over $500 million on films directed by notable filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its large financial investments, Apple TV+ holds a mere 0.2% of TV viewership in the U.S., garnering fewer views in a month than Netflix receives in just 24 hours. The platform has faced challenges in boosting its subscriber base.
While Apple has not appeared overly concerned about the performance of its streaming service—given that it’s not central to its overall business strategy—the company’s era of unchecked spending may be winding down. This is evident in its hesitance to renew shows for third seasons, as highlighted by Bloomberg’s findings.
Notably, Apple TV+ is currently the only major streaming service without an ad-supported tier, but this may soon change following the hiring of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.