Apple is reportedly reevaluating its spending on original content for Apple TV+, having invested around $20 billion in shows and movies that are largely unfamiliar to audiences.
According to reports from Bloomberg, Apple executive Eddy Cue has engaged in discussions with the chief executives of Apple TV+, Zack Van Amburg and Jamie Erlicht, about managing budgets more effectively. The studio heads have indicated a desire for the streaming service to move away from its image as the biggest spender in the industry.
The company’s lavish spending includes a notable $250 million for the miniseries “Masters of Air,” which was released this year but failed to gain significant viewership. Additionally, Apple has spent over $500 million on films from well-known directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial investments, Apple TV+ holds merely 0.2% of TV viewership in the U.S., attracting fewer viewers in a month than Netflix does in just one day. The service has also faced challenges in growing its subscriber base.
Although Apple does not primarily rely on streaming as a key part of its business, it appears that the era of unrestricted spending may soon come to an end. Signals of this shift include a cautious approach to renewing shows for third seasons.
Currently, Apple TV+ stands out as the only major streaming service without an advertising tier, a situation likely to change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.