Apple is reportedly reconsidering its lavish spending on original content for Apple TV+, having invested around $20 billion in shows and movies that many viewers may not be familiar with. According to Bloomberg, executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about scaling back budgets and changing the streaming service’s image as the industry’s largest spender.
The financial outlays include significant sums such as $250 million for the miniseries “Masters of Air,” which has garnered little attention since its release. Additionally, the company has spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these extensive investments, Apple TV+ has only captured about 0.2% of television viewership in the United States, falling far behind competitors like Netflix, which retrieves more views in a single day than Apple TV+ does in an entire month. The service has faced challenges in boosting subscriber numbers.
While Apple has not prioritized streaming as a core part of its business, it appears that its days of unlimited spending on content may be coming to an end. Reports indicate a growing hesitance to renew shows for third seasons. Furthermore, Apple TV+ remains the only major streaming service without an advertising tier, a situation that may soon change following the appointment of Joseph Cady, a former NBCUniversal ad executive.