Apple is reassessing its spending on original content for Apple TV+, which has reached around $20 billion, according to Bloomberg reports. The company is reportedly in discussions led by executive Eddy Cue with studio heads Zack Van Amburg and Jamie Erlicht regarding budget cuts. Apple’s strategy aims to change its image as the biggest spender in the industry.
The tech giant has invested significantly in high-profile projects, such as the $250 million miniseries “Masters of Air,” which debuted this year but failed to gain significant traction. Additionally, Apple has spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ accounts for only 0.2% of television viewership in the United States, lagging behind Netflix, which garners more views in a single day than Apple does in a month. The service has also faced challenges in growing its subscriber base.
While the streaming segment is not central to Apple’s business, the company appears to be curtailing its previously unlimited spending, as indicated by its reluctance to renew shows for third seasons. Notably, Apple TV+ remains the last major streaming service without an ad-supported tier, although this may soon change following the hiring of Joseph Cady, an ad executive from NBCUniversal, earlier this year.