Apple is reportedly reassessing its spending on original content for Apple TV+, having invested approximately $20 billion in shows and movies that many viewers may be unfamiliar with.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about tightening budget allocations. The duo has informed staff that the platform aims to shed its image as the largest spender in the industry.
Among the considerable sums spent, Apple invested $250 million in the miniseries “Masters of Air,” which premiered this year but failed to gain significant traction. Additionally, it has allocated over $500 million for films directed by notable filmmakers including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these massive expenditures, Apple TV+ holds only 0.2% of television viewership in the US, achieving fewer views in a month than Netflix does in just a single day. The service has also faced challenges in growing its subscriber base.
While Apple has not expressed major concern regarding these issues, given that streaming is not central to its business model, the company’s era of unrestricted spending appears to be drawing to a close. This shift in strategy is further supported by reports of its hesitance to renew shows for additional seasons.
Notably, Apple TV+ remains the only major streaming service without an advertising tier, a situation that may change following the hiring of advertising executive Joseph Cady from NBCUniversal earlier this year.