Apple is reassessing its spending on original content for Apple TV+, having reportedly invested around $20 billion on shows and movies. The company recognizes that it has been heavily involved in purchasing programming that may not resonate with viewers.
Bloomberg reported that Apple executive Eddy Cue has been engaged in discussions with studio heads Zack Van Amburg and Jamie Erlicht to tighten budgets and shift the platform’s image away from being the largest spender in the industry.
Among its notable expenses, Apple invested $250 million in the miniseries “Masters of Air,” which was released this year but did not attract significant viewership. Furthermore, the company has spent over $500 million on films from prominent directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive investment, Apple TV+ has captured only 0.2% of TV viewership in the United States, achieving fewer views in a month than Netflix generates in just 24 hours. The platform has also faced difficulties in growing its subscriber base.
While these challenges exist, Apple does not appear overly concerned, as streaming is not a primary focus of its business model. However, the company’s unlimited spending may be nearing an end, as indicated by its hesitance to renew shows for third seasons.
Currently, Apple TV+ is the only major streaming service without an ad-supported tier, but this could soon change following the appointment of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.