Apple is reassessing its spending on original content for Apple TV+ after investing around $20 billion in shows and movies that have gone largely unnoticed by audiences. According to Bloomberg, Apple executive Eddy Cue has discussed budget constraints with studio heads Zack Van Amburg and Jamie Erlicht, as the platform seeks to distance itself from its reputation as the largest spender in the industry.
The company has made significant financial commitments, including $250 million for the miniseries “Masters of Air,” which received minimal attention upon its release this year. Additionally, more than $500 million has been allocated for films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these vast expenditures, Apple TV+ holds a mere 0.2% of TV viewership in the United States, trailing behind platforms like Netflix, which garners more views in just one day than Apple TV+ does in an entire month. The service has also faced challenges in growing its subscriber base.
Although Apple TV+’s struggles have not alarmed the tech giant, as streaming is not a primary focus of its business, the era of unrestricted spending appears to be coming to an end. This shift is evident in its reluctance to renew shows for a third season, as noted by Bloomberg.
Additionally, Apple TV+ is the only major streaming platform that does not currently offer an ad-supported tier. However, this may soon change with the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.