Apple is reevaluating its approach to content spending on Apple TV+, recognizing that it has invested excessively in original shows and movies, many of which have gone largely unrecognized by the public. Reports indicate that the company has spent around $20 billion on original content, prompting discussions among executives about budget reductions.
Eddy Cue, an executive at Apple, has been in talks with studio heads Zack Van Amburg and Jamie Erlicht about scaling back expenses. There are indications that the platform aims to improve its reputation, moving away from being perceived as the largest spender in the industry.
Among its costly investments, Apple spent $250 million on the miniseries “Masters of Air,” which launched recently but failed to gain significant audience interest. The company has also allocated over $500 million for films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its significant financial outlay, Apple TV+ holds only a 0.2% share of television viewership in the United States, attracting fewer viewers in a month than Netflix does within a single day. The service has faced challenges in boosting its subscriber numbers.
While Apple’s streaming service struggles have not raised alarms within the company, as streaming is not central to its overall business model, its era of unrestricted spending appears to be coming to an end. This shift is evident in the company’s hesitation to renew shows for third seasons.
Additionally, Apple TV+ remains the only major streaming platform without an advertising tier. This could change following the recent hiring of Joseph Cady, a former advertising executive from NBCUniversal.