Apple is reportedly reassessing its spending on original content for Apple TV+, having invested around $20 billion on shows and films that many viewers may not recognize. According to Bloomberg, Apple executive Eddy Cue has been engaging with studio leaders Zack Van Amburg and Jamie Erlicht to discuss controlling budget expenditures. The studio heads have indicated a desire for the platform to move away from its image as the industry’s top spender.
This year, Apple allocated $250 million for the miniseries “Masters of Air,” which failed to generate significant viewer interest. In addition, the company has invested over $500 million in projects from notable directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the large financial outlay, Apple TV+ has only captured 0.2% of U.S. television viewership, attracting less attention in a month than what Netflix receives in a single day. Subscriber growth has also been a challenge for the service.
While Apple TV+’s performance hasn’t raised major alarms within the tech company, as streaming is not a primary focus of its business strategy, signs suggest that its era of unrestricted spending may soon conclude. This shift is already evidenced by the decision to be more cautious in renewing shows for third seasons, according to Bloomberg’s findings.
Additionally, Apple TV+ remains the last significant streaming platform without an advertising tier, a status likely to change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.