Apple is reevaluating its spending on original content for Apple TV+, acknowledging that it has invested substantially in shows and movies that have garnered little recognition. The company has spent approximately $20 billion on original programming, according to reports from Bloomberg.
Apple executive Eddy Cue has been in discussions with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, about scaling back budgets. The duo has reportedly conveyed that the streaming service aims to shed its image as the largest spender in the industry.
The tech giant has made significant financial commitments, such as $250 million for the miniseries “Masters of Air,” which received minimal traction upon its release this year. Additionally, Apple has invested over $500 million in films featuring renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive spending, Apple TV+ holds a mere 0.2% of television viewership in the United States, with its monthly views falling short compared to what Netflix achieves in just 24 hours. The platform has also faced difficulties in growing its subscriber base.
While Apple TV+ has been struggling, this has not caused major concern for the broader tech company since streaming is not its primary focus. However, the era of unlimited spending appears to be coming to an end, as indicated by the company’s hesitation to renew series for third seasons.
Currently, Apple TV+ remains the only major streaming platform without an advertising tier, a situation anticipated to change following the hiring of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.