Apple is reassessing its spending on original TV shows and movies as it acknowledges that it has invested excessively in projects that have garnered little attention. The company has reportedly allocated around $20 billion to Apple TV+, and executives are now seeking to tighten budgets.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about scaling back expenditures. The intention is to shift the service’s image away from being perceived as the largest spender in the industry.
Significant investments have included $250 million for the miniseries “Masters of Air,” which launched this year but failed to gain traction. In addition, over $500 million has been spent on productions featuring renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this substantial financial commitment, Apple TV+ holds just 0.2% of television viewership in the U.S., receiving far fewer views in a month than Netflix does in just one day. The platform has also encountered challenges in boosting its subscriber base.
While Apple does not view streaming as a central part of its business, a change in its spending habits appears imminent, especially as the company has been more reluctant to renew shows for third seasons recently. Moreover, Apple TV+ remains the only major streaming service without an ad-supported tier, a situation that may soon change following the hiring of NBCUniversal ad executive Joseph Cady earlier this year.