Apple is reassessing its spending strategies for Apple TV+ after investing an enormous $20 billion in original content, which has garnered little recognition among audiences.
According to reports, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to cut back on production costs. The executives have indicated a desire to move away from being perceived as the highest spender in the industry.
Notable expenditures include a staggering $250 million for the miniseries “Masters of Air,” which received a lukewarm reception upon release. Additionally, the streamer has allocated over $500 million for films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these financial commitments, Apple TV+ holds just 0.2% of total TV viewership in the US, attracting fewer monthly viewers than Netflix achieves in just one day. The platform has also faced challenges in subscriber growth.
While Apple’s streaming service troubles have not greatly impacted the company—largely because streaming is not a primary focus for Apple—it appears that the era of unrestricted spending is coming to an end. This shift is reflected in their hesitance to renew shows for third seasons, as reported by Bloomberg.
Currently, Apple TV+ remains the only major streaming service without an advertisement-supported tier, a situation that may change following the recent hiring of ad executive Joseph Cady from NBCUniversal.