Apple is reevaluating its spending on original content for Apple TV+, reportedly investing around $20 billion in shows and movies that have not gained significant popularity. Executives at Apple, including Eddy Cue, have been discussing ways to control budgets with studio heads Zack Van Amburg and Jamie Erlicht. They aim to distance the platform from its image as the largest spender in the industry.
Large financial commitments have included $250 million for the miniseries “Masters of Air,” which received minimal response upon release. Additionally, Apple has invested over $500 million on films from notable directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the hefty investments, Apple TV+ holds a mere 0.2% of TV viewership in the US, with its viewership in a month falling short of Netflix’s figures within a single day. The service has also faced challenges in subscriber growth.
Though Apple has been less concerned about these streaming struggles since it is not a primary focus of its business, there are indications that the era of unrestricted spending may be coming to an end. This is evident in the company’s cautious approach to renewing shows for third seasons.
Interestingly, Apple TV+ remains the only significant streaming service without an advertising tier. However, this may soon change, following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.