Apple is reevaluating its spending strategy for original content on Apple TV+ after investing approximately $20 billion. According to a report by Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to tighten budgets and change the service’s reputation as the biggest spender in the industry.
The tech giant has made significant financial commitments, such as $250 million for the miniseries “Masters of Air,” which failed to attract substantial viewership. Additionally, over $500 million has been spent on films from acclaimed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive investment, Apple TV+ holds a meager 0.2% share of the television viewing audience in the US, garnering less viewership in a month than Netflix achieves in a single day. Moreover, Apple TV+ has encountered challenges in growing its subscriber base.
While the streaming service’s struggles have not raised alarm for Apple, given that streaming is not integral to its primary business operations, the era of unrestricted spending appears to be coming to an end. This shift is reflected in the company’s hesitation to renew shows for third seasons.
Currently, Apple TV+ is the only major streaming platform without an advertisement-supported tier, but this may soon change following the hiring of Joseph Cady, who previously held an advertising role at NBCUniversal.