Apple is re-evaluating its spending strategy for original content on Apple TV+, as it has invested a substantial $20 billion on shows and movies that many viewers may not recognize. According to Bloomberg, the company’s executive Eddy Cue has been in discussions with Apple TV+ studio leaders Zack Van Amburg and Jamie Erlicht regarding budget reductions. The goal is to reshape the platform’s image as the largest spender in the streaming industry.
Apple has made significant financial commitments, such as $250 million for the miniseries “Masters of Air,” which debuted this year but failed to generate considerable interest. Additionally, over $500 million has been spent on films directed by renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ commands only 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix manages in just 24 hours. Subscriber growth has also proven challenging for the service.
While Apple has shown little concern over Apple TV+’s performance—given that streaming is not a primary aspect of its business—the company appears to be scaling back on its expansive spending. Indications include hesitance to renew shows for third seasons.
Furthermore, Apple TV+ remains the last major streaming platform without an advertisement-supported tier, a situation that may evolve following the recruitment of ad executive Joseph Cady from NBCUniversal earlier this year.