Apple is reassessing its spending on original content for Apple TV+, having invested a staggering $20 billion in shows and movies that many viewers may not recognize or have heard of. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about controlling production budgets. The goal is to move away from the company’s image as the biggest spender in the industry.
The company has made significant investments, including $250 million for the miniseries “Masters of Air,” which struggled to gain traction upon release. Additionally, it has invested over $500 million in films directed by major filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these high expenditure figures, Apple TV+ holds only 0.2% of total TV viewership in the United States, with its monthly views falling short of what Netflix achieves in just a single day. Subscriber growth has also been challenging for the platform.
Although Apple TV+’s challenges do not heavily concern the company—since streaming is not a primary focus for its business—the era of unrestricted spending appears to be coming to an end. This shift is evidenced by the company’s hesitance to renew shows for third seasons, as indicated by Bloomberg’s data.
Apple TV+ is currently the last major streaming service that does not offer an advertising tier, although this may change as the company recently hired Joseph Cady, a former ad executive from NBCUniversal.