Apple is reassessing its spending on original shows and movies for its streaming service, Apple TV+. The company reportedly invested around $20 billion in content but is now seeking to reduce its budgets due to limited viewership and subscriber growth.
According to Bloomberg, Apple executive Eddy Cue has engaged in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about scaling back expenditures. The studio chiefs have indicated a desire to move away from the image of being the largest spender in the industry.
Among its notable expenditures, Apple allocated $250 million for the miniseries “Masters of Air,” which launched this year but failed to gain significant traction. The company has also spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its substantial investment, Apple TV+ captures only 0.2% of television viewership in the US, with its monthly audience lower than the number of views Netflix receives in just one day. The platform’s struggles have not seemed to concern Apple significantly, as streaming is not a primary focus of its business model. However, signs of reduced spending have emerged, including reluctance to renew series for third seasons.
Apple TV+ currently stands as the only major streaming service without an ad-supported tier, a situation likely to change following the appointment of Joseph Cady, a former NBCUniversal advertising executive, earlier this year.