Apple is reportedly scaling back its spending on original content for its streaming service, Apple TV+, after investing a staggering $20 billion. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets and reducing the company’s reputation as the largest spender in the industry.
The company has made significant financial commitments, such as spending $250 million on the miniseries “Masters of Air,” which launched this year but failed to gain much audience interest. In addition, Apple has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive expenditure, Apple TV+ accounts for only 0.2% of television viewership in the United States, garnering fewer viewers in a month than Netflix attracts in just one day. The platform has also faced challenges in growing its subscriber base.
While Apple does not prioritize streaming as a core component of its business, the tech giant appears to be moving away from its previous approach of unlimited spending. This shift is evident in its hesitance to renew shows for third seasons, as detailed by Bloomberg.
Currently, Apple TV+ stands out as the only major streaming service without an advertising tier, a situation that may soon change, especially since the company recruited Joseph Cady, a former ad executive from NBCUniversal, earlier this year.