Apple is reportedly reassessing its spending on original content for Apple TV+, having expended a staggering $20 billion. The company aims to modify its approach after officials recognized that their extravagant budgets have not translated into a significant viewership return.
Airport executive Eddy Cue has been in discussions with Apple TV+’s studio leaders, Zack Van Amburg and Jamie Erlicht, about reducing expenses. Both executives have indicated that there is a desire to move away from the platform’s image as the highest-cost player in the streaming industry.
Apple’s hefty investments include $250 million for the recently released miniseries “Masters of Air,” which ultimately garnered minimal attention. Additionally, the company allocated over $500 million for films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these vast expenditures, Apple TV+ commands a mere 0.2% of television viewership in the United States, receiving fewer views in one month than Netflix achieves in just 24 hours. Growth in subscriber numbers has also proven challenging.
While Apple has shown little concern over Apple TV+’s sluggish performance—given that streaming is not central to its overall business—the excessive spending habits appear to be tapering off. This shift is evident in its hesitance to renew series for a third season.
Notably, Apple TV+ remains the last major streaming service without an advertising tier. However, changes may be forthcoming as the company welcomed Joseph Cady, an advertising executive from NBCUniversal, to its team earlier this year.