Apple is reevaluating its spending on original content for Apple TV+ after investing around $20 billion, as reported by Bloomberg. The tech giant has acknowledged that it is allocating excessive funds to television shows and movies that have not gained significant audience recognition.
According to reports, Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. The studio heads have indicated that they are working to change the platform’s image as the industry’s largest spender.
Apple’s significant financial outlay includes $250 million for the miniseries “Masters of Air,” which launched this year but did not achieve expected viewership. Additionally, the company has invested over $500 million in films from notable directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its massive investment, Apple TV+ holds only 0.2% of television viewership in the United States, attracting significantly fewer viewers in a month than Netflix does in just 24 hours. The platform has also faced challenges in attracting and retaining subscribers.
While Apple has shown a degree of nonchalance regarding the performance of its streaming service, as it is not a fundamental part of its business model, there are indications that the era of unrestricted spending may be coming to an end. Evidence of this shift can be seen in the company’s reluctance to renew shows for third seasons.
Notably, Apple TV+ is the only major streaming platform lacking an advertising tier, a situation likely to change following the recruitment of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.