Apple is reassessing its spending on original content for Apple TV+, having reportedly invested around $20 billion on shows and movies that many viewers may not have seen or even heard of. According to Bloomberg, Apple executive Eddy Cue is in discussions with studio heads Zack Van Amburg and Jamie Erlicht about tightening budget allocations.
The company has made significant financial commitments, including $250 million for the miniseries “Masters of Air,” which launched this year but failed to generate much interest. It has also spent over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this hefty investment, Apple TV+ captures only 0.2% of television viewership in the United States, with its viewership in a month trailing behind Netflix’s figures from just one day. The service has faced challenges in growing its subscriber base.
Although Apple’s streaming service issues do not seem to pose an immediate concern for the company—given that streaming is not central to its overall business—the trend of unrestrained spending appears to be coming to an end. This shift is evidenced by Apple’s hesitance to renew shows for third seasons, according to Bloomberg’s observations.
Additionally, Apple TV+ remains the last major streaming platform without an advertising-based tier. However, this could change following the appointment of Joseph Cady, a former NBCUniversal advertising executive, earlier this year.