Apple is reportedly reassessing its spending habits on original content for its streaming service, Apple TV+, after investing an astounding $20 billion in shows and movies. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to reduce production budgets and alter the perception of Apple TV+ as the largest spender in the industry.
The tech giant has invested heavily in titles like the $250 million miniseries “Masters of Air,” which was released this year but failed to gain significant viewership. Additionally, Apple has allocated more than $500 million for films from acclaimed directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these vast expenditures, Apple TV+ has managed to capture only 0.2% of the TV viewership in the United States, lagging far behind competitors like Netflix, which garners more views within a single day than Apple does in an entire month. Subscriber growth has also stalled.
Though Apple does not rely on streaming as a core part of its business, it appears to be curtailing its unrestricted financial commitment to content. This shift is reflected in its hesitance to renew several shows for a third season, according to Bloomberg’s analysis.
Notably, Apple TV+ remains the only major streaming platform without an advertising tier. However, this may soon change following the hiring of Joseph Cady, a former NBCUniversal ad executive, earlier this year.