Apple is reportedly reconsidering its spending on original content for Apple TV+, after investing a staggering $20 billion. The company has faced criticism for producing several shows and movies that have not gained significant viewership.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, about managing and reducing budgets. There are indications that the streaming service aims to shed its image as the largest spender in the industry.
Apple has invested heavily in projects such as the miniseries “Masters of Air,” which cost $250 million but received little attention upon release. Additionally, more than $500 million has been allocated to films from acclaimed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its extensive financial commitment, Apple TV+ only accounts for 0.2% of television viewership in the U.S., and in terms of views, it is significantly outpaced by Netflix, which receives more views in just 24 hours. Also, Apple has faced challenges in growing its subscriber base.
While these challenges exist, streaming services are not Apple’s primary focus, and the company does not appear overly concerned about the current performance of Apple TV+. However, the era of unrestricted spending may be coming to an end, as evidenced by the company’s reluctance to renew shows for third seasons, according to Bloomberg.
Currently, Apple TV+ remains the last major streaming platform without an advertising tier, though this could soon change following the appointment of advertising executive Joseph Cady from NBCUniversal earlier this year.