Apple is reassessing its spending on original content for Apple TV+, reportedly allocating around $20 billion. According to Bloomberg, Apple executive Eddy Cue has been discussing budget constraints with the studio heads, Zack Van Amburg and Jamie Erlicht, signaling a desire to shed its image as the industry’s largest spender.
The tech giant has made significant investments, including $250 million for the miniseries “Masters of Air,” released this year with disappointing results. Additionally, Apple has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these expenditures, Apple TV+ claims just 0.2% of U.S. TV viewership, lagging far behind competitors like Netflix, which receives more views in just 24 hours than Apple does in an entire month. The platform has also faced challenges in growing its subscriber base.
While Apple does not appear overly concerned about these streaming issues, as it is not central to its core business, the era of unrestricted spending may be coming to an end. This shift is reflected in the company’s hesitance to renew shows for third seasons, according to Bloomberg’s data.
Apple TV+ is currently the only major streaming service lacking an advertising tier, a situation that could soon change following the hiring of NBCUniversal ad executive Joseph Cady earlier this year.