Apple is reportedly reevaluating its spending on original content for Apple TV+, having invested approximately $20 billion in television shows and movies that may not be widely recognized. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about scaling back budgets, as they seek to improve the streaming platform’s image of being the industry’s largest spender.
Despite significant financial commitments, such as $250 million for the miniseries “Masters of Air,” which saw limited viewer engagement, and over $500 million on films by renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn, Apple TV+ has only managed to capture 0.2% of TV viewership in the United States. This figure pales in comparison to the viewership that Netflix achieves in just a single day.
Apple’s lack of concern regarding the performance of Apple TV+ reflects its status as a secondary component of the company’s overall business model. However, the era of unrestricted spending appears to be drawing to a close, as indicated by a cautious approach to renewing shows for third seasons.
Notably, Apple TV+ is currently the only major streaming service without an advertising tier, a situation likely to change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.