Apple is re-evaluating its spending on original programming for Apple TV+, having reportedly invested a staggering $20 billion on content that many viewers may not recognize. According to Bloomberg, Apple executive Eddy Cue has been in discussions with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, to manage budgets more effectively and shift away from the perception of being the industry’s largest spender.
The company has made significant financial commitments, such as $250 million for the miniseries “Masters of Air,” which received a lukewarm response upon its release this year. In addition, Apple has invested over $500 million in films directed by notable filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the massive expenditure, Apple TV+ holds just 0.2% of the television viewership in the United States, accumulating fewer views in a month than Netflix garners in a single day. The streaming service has also encountered challenges in attracting new subscribers.
While Apple appears to be unconcerned about the performance of Apple TV+, given that streaming is not a primary part of its business model, the era of unrestricted spending may soon come to an end. This shift is already reflected in the company’s hesitance to renew shows for third seasons, as per Bloomberg.
Notably, Apple TV+ is currently the only major streaming service without an advertising tier, although this could soon change with the recent hiring of Joseph Cady, a former ad executive from NBCUniversal.