Apple is reconsidering its spending strategy for original content on Apple TV+, following a substantial investment of $20 billion. Reports indicate that Apple executive Eddy Cue has been discussing budget reductions with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht. They are aiming to change the platform’s reputation as the largest spender in the industry.
The company has made significant financial commitments to various productions, such as $250 million for the miniseries “Masters of Air,” which garnered little attention upon release. Additionally, Apple has spent over $500 million on films directed by renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this enormous investment, Apple TV+ holds only 0.2% of the United States television viewership, with its monthly numbers trailing behind Netflix’s daily views. The service has also struggled to grow its subscriber base.
While streaming services are not the primary focus of Apple’s overall business, the company seems to be shifting away from its previously unlimited spending approach, as indicated by its reluctance to renew shows for additional seasons. Furthermore, Apple TV+ is currently the last significant streaming platform without an advertising tier, a situation that may change after the recent hiring of advertising executive Joseph Cady from NBCUniversal.