Apple is reportedly reevaluating its spending on original content for Apple TV+, as the company has invested an estimated $20 billion on television shows and movies that many consumers may not recognize or have heard of.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio chiefs Zack Van Amburg and Jamie Erlicht regarding the need to control production budgets. The duo has indicated that the streaming service aims to move away from its image as the industry’s largest spender.
Apple has made significant investments, such as $250 million on the recent miniseries “Masters of Air,” which received a lukewarm response upon release. Additionally, the company has allocated over $500 million for films from renowned directors like Martin Scorsese and Ridley Scott.
Despite these expenditures, Apple TV+ accounts for only 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix does in a single day. The platform has also faced challenges in growing its subscriber base.
While the streaming segment does not define Apple’s primary business, the company appears to be signaling a shift away from unlimited spending, as evidenced by its hesitance to renew shows for third seasons, based on Bloomberg’s analysis.
Furthermore, Apple TV+ remains unique among major streaming services as it does not offer an advertising-supported tier. However, this may soon change following the hiring of Joseph Cady, a former NBCUniversal ad executive, earlier this year.