Apple is reportedly re-evaluating its spending on original content for Apple TV+, having invested around $20 billion in shows and movies. According to Bloomberg, Apple executive Eddy Cue has engaged in discussions with the studio heads of Apple TV+, Zack Van Amburg and Jamie Erlicht, about reducing their budgets. The studio chiefs are said to be expressing a desire to change the perception that Apple is the highest spender in the industry.
The company has previously made substantial financial commitments, such as spending $250 million on the miniseries “Masters of Air,” which had minimal impact upon its release this year. Additionally, Apple TV+ has invested over $500 million in films directed by notable filmmakers including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ holds only 0.2% of the television viewership market in the United States, attracting far fewer views monthly than Netflix does in just one day. The platform has also faced challenges in boosting its subscriber count.
Although Apple has not prioritized streaming as a core part of its business, the trend of excessive spending appears to be waning, as evidenced by its hesitance to renew certain series for third seasons. Furthermore, Apple TV+ remains the only major streaming service that does not offer an ad-supported tier. This could change soon, especially since the company hired ad executive Joseph Cady from NBCUniversal earlier this year.