Apple is reevaluating its spending on original content for Apple TV+ after reportedly investing around $20 billion on shows and movies that may not have gained significant public attention.
According to Bloomberg, Apple executive Eddy Cue has been having discussions with studio chiefs Zack Van Amburg and Jamie Erlicht about reducing production budgets. The studio heads are aiming to change the company’s perception as the highest spender in the industry.
Apple’s large investments include $250 million for the miniseries “Masters of Air,” which did not generate much buzz upon its release. Additionally, the company has spent over $500 million on films directed by renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these significant expenditures, Apple TV+ captures only 0.2% of TV viewership in the U.S., and its monthly viewership pales in comparison to Netflix, which attracts more views within just 24 hours. The platform has also faced challenges in growing its subscriber base.
Although these issues do not seem to be causing major concern for Apple, as streaming is not a central part of its business model, the company’s budgetary constraints may lead to a decrease in lavish spending. This is reflected in its hesitation to renew shows for third seasons, as indicated by Bloomberg data.
Notably, Apple TV+ remains the only major streaming service without an ad-supported tier, a situation that may shift following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.