Apple TV+ Faces Major Budget Cuts Amidst $20 Billion Spending Review

Apple is reevaluating its approach to Apple TV+ after spending approximately $20 billion on original content, which has included high-profile projects that have not garnered significant viewership. According to reports, Apple executive Eddy Cue has been meeting with executives Zack Van Amburg and Jamie Erlicht to discuss reducing budgets and shaking off the perception of being the largest spender in the industry.

The tech giant has invested heavily in productions, such as the $250 million miniseries “Masters of Air,” which received negligible traction upon its release this year. Additionally, over $500 million has been spent on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.

Despite this massive investment, Apple TV+ accounts for only 0.2% of television viewership in the United States, with monthly views trailing far behind those of competitors like Netflix, which can achieve in a single day what Apple TV+ sees in an entire month. The service has also faced challenges in growing its subscriber base.

While Apple has not prioritized streaming as a central aspect of its business, it appears to be shifting away from its previously unlimited spending model. This change is reflected in a cautious approach to renewing shows for additional seasons. Furthermore, Apple TV+ remains unique among major streaming platforms for not offering an ad-supported tier, a situation that may soon alter following the hiring of Joseph Cady from NBCUniversal to lead ad strategy earlier this year.

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