Apple is reportedly reevaluating its spending on television shows and movies, having invested approximately $20 billion in original content for its streaming service, Apple TV+. According to Bloomberg, discussions between Apple executive Eddy Cue and studio heads Zack Van Amburg and Jamie Erlicht have focused on reducing budgets and altering the platform’s identity as the industry’s largest spender.
The company has invested enormous sums on various projects, including $250 million for the miniseries “Masters of Air,” which received minimal audience engagement upon its release. In addition, Apple TV+ has spent over $500 million funding films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the substantial financial commitment, Apple TV+ holds only 0.2% of total TV viewership in the United States, attracting significantly fewer viewers in a month compared to the numbers Netflix achieves in just a day. The service is also facing challenges in growing its subscriber base.
Although Apple does not view streaming as central to its business, it appears the era of unrestricted spending on content may soon come to an end. This shift is already evident as the company has been hesitant to renew shows for third seasons. Notably, Apple TV+ remains the only major streaming platform without an advertising tier, although this may change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.