Apple is re-evaluating its approach to original content for Apple TV+, acknowledging that its spending on shows and movies is excessive. The tech giant has reportedly invested around $20 billion in creating original programming, but this has not translated to success in viewership.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with Apple TV+’s studio heads, Zack Van Amburg and Jamie Erlicht, to tighten budgets and reduce the service’s image as a high spender in the industry. High-profile projects, such as the $250 million miniseries “Masters of Air,” have not achieved significant popularity, and the company has spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the substantial investments, Apple TV+ accounts for only 0.2% of TV viewership in the United States, with fewer views in an entire month than Netflix attracts in just a day. The service is also facing challenges in subscriber growth.
While Apple doesn’t seem concerned about these issues—streaming is not a central focus of its business—signs indicate that its era of unlimited spending may be coming to an end. The company has been hesitant to renew shows for third seasons.
Notably, Apple TV+ is currently the only major streaming platform without an advertising tier, a situation that may change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.