Apple is reportedly re-evaluating its spending strategy for its streaming service Apple TV+ after investing approximately $20 billion in original content. Bloomberg has revealed that Apple executive Eddy Cue has been in discussions with the service’s studio leaders, Zack Van Amburg and Jamie Erlicht, about reducing budgets and moving away from the perception of being the industry’s largest spender.
The company has made significant financial commitments for productions, such as the $250 million spent on the miniseries “Masters of Air,” which garnered minimal attention upon release. Additionally, Apple has invested over $500 million in films directed by notable filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the high expenditure, Apple TV+ only accounts for 0.2% of overall TV viewership in the United States, lagging far behind competitors like Netflix, which can achieve more views in a single day than Apple TV+ does in a month. The platform has also faced challenges in growing its subscriber base.
Although Apple TV+’s struggles have not raised alarms for the tech giant, as streaming is not a primary focus of its business, indications suggest that its era of unrestricted spending may soon be over. This shift is further evidenced by a hesitation to renew series for a third season. Furthermore, Apple TV+ remains the only major streaming platform without an advertising tier, a situation that may change following the company’s recent hiring of ad executive Joseph Cady from NBCUniversal.