Apple is reportedly reevaluating its spending strategy for original content on Apple TV+ after investing an astonishing $20 billion. According to Bloomberg, Apple executive Eddy Cue has held discussions with studio heads Zack Van Amburg and Jamie Erlicht about budget cuts. The goal is to change the platform’s image as the highest spender in the industry.
The company has made significant investments in various productions, such as spending $250 million on the miniseries “Masters of Air,” which struggled to gain traction upon release. In addition, Apple has invested over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
However, despite its substantial financial commitment, Apple TV+ has captured only 0.2% of television viewership in the United States, garnering fewer views in a month than Netflix receives in just one day. The platform has also faced challenges in growing its subscriber base.
While Apple does not prioritize streaming as a core aspect of its business, the company seems to be shifting away from its previous approach of limitless spending, as indicated by its reluctance to renew shows for third seasons, according to Bloomberg data.
Currently, Apple TV+ is the only prominent streaming service without an advertising tier, but this may soon change following the company’s recent recruitment of Joseph Cady, a former ad executive from NBCUniversal.