Apple is reconsidering its spending strategies for original content on Apple TV+, having invested an astounding $20 billion on shows and movies that many viewers may not be familiar with. According to reports from Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets and improving the platform’s image as a major money spender in the industry.
The company has made substantial financial commitments, such as $250 million for the miniseries “Masters of Air,” which did not perform as expected. In total, Apple has invested over $500 million in films featuring renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these exorbitant expenditures, Apple TV+ holds a mere 0.2% share of TV viewership in the U.S., garnering significantly fewer views in a month than Netflix acquires in just a day. The streaming service has also faced challenges in attracting new subscribers.
While Apple’s overall business isn’t heavily dependent on streaming, it appears to be shifting away from unrestricted spending. This has been indicated by the company’s hesitance to renew shows for a third season, as noted by Bloomberg. Notably, Apple TV+ is currently the only major streaming platform without an advertisement-supported tier, although this may soon change following the hire of ad executive Joseph Cady from NBCUniversal.