Apple is reevaluating its spending on original content for its streaming service, Apple TV+, following a reported $20 billion investment in shows and movies, many of which have gone largely unnoticed by audiences. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht regarding budget cuts, as the streaming platform aims to move away from its image as the industry’s top spender.
The company has invested substantial sums on projects, like $250 million for the miniseries “Masters of Air,” which failed to gain significant traction upon release. In addition, Apple has committed over $500 million to films from notable directors including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive financial commitment, Apple TV+ captures only 0.2% of TV viewership in the US, with its monthly viewership lagging far behind competitors like Netflix, which garners more views in just one day. The service has also faced challenges in boosting its subscriber numbers.
Though Apple has not expressed major concern about the struggles of Apple TV+, as streaming is not a primary focus of its business, the era of unchecked spending may be coming to an end. This shift is evidenced by a hesitance to renew shows for third seasons, as noted by Bloomberg data.
Interestingly, Apple TV+ remains the only significant streaming service without an ad-supported tier. However, this could soon change with the recent hiring of Joseph Cady, a former ad executive from NBCUniversal, who could help expand the platform’s monetization efforts.