Apple is reconsidering its spending strategy on original content for Apple TV+, after investing an enormous $20 billion in shows and movies, many of which have gone largely unnoticed by audiences. According to reports, Apple executive Eddy Cue has been discussing budget constraints with the studio heads of Apple TV+, Zack Van Amburg and Jamie Erlicht, as the platform aims to change its image as the biggest spender in the industry.
The tech giant has allocated significant funding to various projects, including $250 million for the miniseries “Masters of Air,” which received minimal attention upon its release this year. Furthermore, Apple has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial expenditures, Apple TV+ holds only 0.2% of TV viewership in the United States, attracting fewer viewers in a month than Netflix does within just 24 hours. The platform has also faced challenges in growing its subscriber base.
While Apple TV+’s struggles haven’t been a major concern for the overall business—which is primarily focused on hardware—its era of unlimited spending may be coming to an end. Reports indicate a hesitance to renew shows for third seasons, as detailed in Bloomberg data.
Interestingly, Apple TV+ remains the last significant streaming service without an advertising tier. This is likely to change, especially following the recent hiring of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.