Apple is reevaluating its spending strategy for original content on Apple TV+, having reportedly spent around $20 billion on shows and movies that have not gained significant traction. According to Bloomberg, Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets and altering the perception of the platform as the industry’s largest spender.
The company has invested heavily in productions, including $250 million on the miniseries “Masters of Air,” which underperformed upon release this year. Additionally, Apple has spent over $500 million on films directed by notable filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its extensive financial commitments, Apple TV+ holds only 0.2% of television viewership in the U.S., attracting fewer viewers in a month than Netflix does in just 24 hours. The service has also faced challenges in growing its subscriber base.
Although the streaming segment is not a central focus for Apple, the company appears to be shifting away from unrestricted spending, as evidenced by its hesitation to renew shows for third seasons. Furthermore, Apple TV+ is currently the only major streaming service without an advertising tier, a situation likely to change following the hiring of NBCUniversal ad executive Joseph Cady earlier this year.