Apple is reassessing its spending on original content for Apple TV+ after investing an astonishing $20 billion in shows and movies, many of which have gone unnoticed by viewers.
According to Bloomberg, Apple executive Eddy Cue has been discussing budget constraints with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht. The discussions include a desire to move away from being known as the largest spender in the industry.
The company has made significant financial commitments, including $250 million for the miniseries “Masters of Air,” which premiered this year but failed to gain traction. Additionally, Apple has invested over $500 million on films from prominent directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its hefty expenditure, Apple TV+ commands only 0.2% of U.S. TV viewership, garnering fewer views in a month than Netflix achieves in a single day. The service has also faced challenges in boosting its subscriber numbers.
While these issues do not seem to alarm Apple, given that streaming is not central to its business model, it appears that the era of unrestricted spending may be coming to an end. This shift is already reflected in the company’s cautious approach to renewing shows for third seasons.
Notably, Apple TV+ currently stands as the only major streaming platform without an advertising tier, a situation that may soon change with the recent hiring of advertising executive Joseph Cady from NBCUniversal.