Apple is reassessing its spending habits on original content for its streaming service, Apple TV+, after investing an estimated $20 billion. Recent reports indicate that Apple executive Eddy Cue has engaged in discussions with studio heads Zack Van Amburg and Jamie Erlicht regarding the need to tighten budgets and alter the perception of Apple TV+ as the industry’s highest spender.
The company has invested significant amounts in productions, including $250 million for the miniseries “Masters of Air,” which garnered minimal viewership upon its release. Additionally, it has spent over $500 million on films by acclaimed directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive financial commitment, Apple TV+ accounts for only 0.2% of television viewership in the United States and struggles to attract subscribers, achieving fewer views in a month than Netflix receives in just one day. While Apple may not prioritize streaming as a core part of its business, the era of unrestrained spending appears to be coming to an end, as evidenced by the company’s hesitance to renew shows for third seasons.
Furthermore, Apple TV+ remains the only major streaming platform without an ad-supported tier, but this is expected to change following the hire of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.