Apple is reevaluating its spending on original content for Apple TV+, having reportedly invested around $20 billion in shows and movies, many of which have not gained significant viewership. According to Bloomberg, Apple executive Eddy Cue has been discussing budget cuts with studio heads Zack Van Amburg and Jamie Erlicht, as the platform aims to change its image as the industry’s largest spender.
The company has made substantial financial commitments, including $250 million for the miniseries “Masters of Air,” which did not achieve expected traction upon release. Additionally, it has invested over $500 million in films by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ holds only 0.2% of TV viewership in the US, drawing fewer viewers in a month than Netflix does in just one day. The platform has also encountered challenges in increasing its subscriber count.
Streaming is not a primary focus for Apple, which may explain its lack of concern over these issues. However, the tech giant seems to be moving away from its unrestricted spending approach, as evidenced by its hesitance to renew shows for third seasons, as indicated by Bloomberg.
Notably, Apple TV+ is currently the last major streaming service without an advertising tier. This may soon change, as the company recently hired Joseph Cady, a former ad executive from NBCUniversal.