Apple is reportedly reassessing its spending on content for Apple TV+, having invested approximately $20 billion in original shows and movies, many of which have gone unnoticed by viewers.
According to recent reports, Apple executive Eddy Cue has been holding discussions with studio heads Zack Van Amburg and Jamie Erlicht to rein in costs. The duo has been working to change the streamer’s image as the highest spender in the industry.
The company has made considerable expenses, including $250 million for the miniseries “Masters of Air,” which did not generate significant interest upon release. Further, over $500 million has been allocated for films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this substantial investment, Apple TV+ captures only 0.2% of television viewership in the U.S., with Netflix receiving more views in just one day than Apple TV+ does in an entire month. The service has also struggled with subscriber growth.
While Apple may not regard its streaming service as central to its business model, indications suggest that its era of unlimited spending is coming to an end. This shift is highlighted by a decreased willingness to renew shows for a third season, per Bloomberg’s findings.
Currently, Apple TV+ stands out as the only major streaming platform without an advertising tier. However, this may change soon, particularly following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.