Apple is re-evaluating its spending on original content for its streaming service, Apple TV+, after reportedly investing around $20 billion. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about scaling back their budgets. They have indicated a desire to move away from being viewed as the largest spender in the industry.
The company has invested heavily in productions, including $250 million for the miniseries “Masters of Air,” which underperformed upon release. Furthermore, Apple has spent over $500 million on films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these significant financial commitments, Apple TV+ claims a mere 0.2% share of TV viewership in the US, accumulating fewer views in a month than Netflix does in just one day. Subscriber growth has also been a challenge for the platform.
While streaming isn’t a central focus for Apple, the company’s shift away from unlimited spending is becoming apparent, particularly with its hesitation to renew shows for third seasons. Notably, Apple TV+ remains the only major streaming service without an advertising tier, a situation that may change following the hiring of advertising executive Joseph Cady from NBCUniversal.