Apple is reportedly reassessing its spending on original content for Apple TV+, having invested an estimated $20 billion in shows and movies that may not have captured audience attention. According to Bloomberg, company executive Eddy Cue has been in discussions with studio chiefs Zack Van Amburg and Jamie Erlicht to reduce budgetary outlays and distance the platform from its image as the industry’s largest spender.
The tech giant has made significant financial commitments, including $250 million for the miniseries “Masters of Air,” which garnered little viewer engagement upon its release this year. Additionally, over $500 million has been allocated to projects from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this level of investment, Apple TV+ accounts for only 0.2% of television viewership in the U.S., attracting fewer viewers in a month than Netflix does within a single day. Subscriber growth has also been a challenge for the service.
While Apple doesn’t view streaming as its primary business focus, it seems to be signaling a shift away from unlimited spending, as evidenced by its hesitance to renew shows for third seasons. Furthermore, Apple TV+ remains the only major streaming platform without an advertising tier, which may change following the appointment of Joseph Cady, a former NBCUniversal ad executive, earlier this year.