Apple is reassessing its spending strategies on original programming for Apple TV+, following reports that the company has invested an astounding $20 billion in content that many viewers are either unfamiliar with or have never seen.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with Apple TV+’s studio heads, Zack Van Amburg and Jamie Erlicht, about tightening budgets. The executives have reportedly expressed a desire for the streaming service to move away from its image as the largest spender in the industry.
Apple’s hefty investments include $250 million for the miniseries “Masters of Air,” which was released this year but failed to gain significant traction. Additionally, the company has spent over $500 million on films directed by acclaimed filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite such extensive expenditure, Apple TV+ commands only 0.2% of the television viewership share in the U.S., attracting fewer viewers in a month than Netflix garners in just 24 hours. The service has also faced challenges in growing its subscriber count.
While these challenges do not seem to be a primary concern for Apple, as streaming is not central to its business model, the era of limitless spending appears to be coming to an end. This shift is evidenced by the company’s hesitation to renew shows for their third seasons.
Moreover, Apple TV+ remains the only major streaming service that does not offer an ad-supported tier. This could soon change following the recruitment of Joseph Cady, a former NBCUniversal ad executive, earlier this year.