Apple is reevaluating its approach to original programming for Apple TV+, following substantial expenditure of around $20 billion. According to a report from Bloomberg, Apple executive Eddy Cue has been in discussions with studio chiefs Zack Van Amburg and Jamie Erlicht about reducing production budgets. The executives have indicated a desire for the streaming platform to move away from its reputation as the largest spender in the industry.
Notable expenditures include $250 million for the miniseries “Masters of Air,” released earlier this year with minimal impact on viewership. Apple has also invested over $500 million in films from acclaimed directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn. Despite these significant investments, Apple TV+ holds only 0.2% of TV viewership in the United States and garners fewer views in a month than Netflix does in just 24 hours. The platform has also faced challenges in attracting new subscribers.
While Apple’s struggles with Apple TV+ have not been a primary concern for the company, given that streaming is not central to its business model, the era of unrestricted spending appears to be coming to an end. The company has been cautious with renewing shows for third seasons, as indicated by Bloomberg data. Additionally, Apple TV+ remains the only major streaming service without an advertising tier, a status that may soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.