Apple is reevaluating its spending on original content for Apple TV+, following reports that the company has invested an astonishing $20 billion in shows and movies that may not have gained much public attention. Apple executive Eddy Cue has been in discussions with the streaming service’s studio leaders, Zack Van Amburg and Jamie Erlicht, about scaling back on budgets. The aim is to improve Apple TV+’s image as the largest spender in the industry.
The company has made significant financial commitments, such as the $250 million spent on the miniseries “Masters of Air,” which received a lackluster response upon release. Additionally, over $500 million was allocated for films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive investment, Apple TV+ holds only 0.2% of the television viewership share in the United States, falling short compared to the daily viewership numbers generated by Netflix. The service has faced challenges in attracting new subscribers as well.
Even though Apple TV+’s struggles do not seem to be a major concern for Apple, considering that streaming is not central to its business model, there are indications that its era of unchecked spending may be coming to an end. This is evident in the company’s hesitance to renew shows for third seasons, as highlighted by recent data.
Furthermore, Apple TV+ remains the only major streaming platform that has not implemented an advertising tier. However, this may soon change, especially after the recent hiring of Joseph Cady, a former ad executive from NBCUniversal.