Apple is reassessing its spending on original content for Apple TV+, having invested around $20 billion in shows and movies that many viewers may not recognize. The tech giant is reportedly working to reduce budgets after discussions between Apple executive Eddy Cue and the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht.
Recent reports highlight that Apple has made significant expenditures on various projects, such as $250 million for the miniseries “Masters of Air,” which failed to gain traction upon its release. The company has also spent over $500 million on films from well-known directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these massive investments, Apple TV+ holds a mere 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix does in just 24 hours. The platform has also faced challenges in growing its subscriber base.
Although Apple TV+’s struggles may not alarm the company, as streaming isn’t central to its overall business, there are indications that its era of unrestricted spending is coming to an end. This is evidenced by a growing reluctance to renew shows for a third season. Additionally, Apple TV+ remains the only major streaming service that has yet to offer an ad-supported tier, a situation that may soon change with the recent hiring of ad executive Joseph Cady from NBCUniversal.