Apple is reassessing its spending on original content for Apple TV+, following a staggering $20 billion investment in shows and movies that many viewers may not be familiar with. Reports from Bloomberg indicate that Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets, as the streamer aims to change its image from being the largest spender in the industry.
Recent examples of Apple’s lavish spending include $250 million for the miniseries “Masters of Air,” which failed to gain significant traction upon release. Additionally, the company has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this substantial expenditure, Apple TV+ holds only 0.2% of television viewership in the United States, accumulating fewer views in a month than Netflix does in just one day. The service has also faced challenges in boosting its subscriber base.
While Apple has not been overly concerned with these issues, given that streaming is not a central part of its business model, the company appears to be moving away from its extensive spending strategy. This shift is reflected in its hesitancy to renew shows for additional seasons, as indicated by Bloomberg data.
Additionally, Apple TV+ remains the last major streaming service without an advertising tier, a situation likely to change following the recent hiring of Joseph Cady, a former ad executive from NBCUniversal.