Apple appears to be reassessing its substantial investment in original content for Apple TV+, following reports of spending around $20 billion. Recent discussions involving Apple executive Eddy Cue and the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, have focused on tightening budgets and shifting away from the platform’s image as the biggest spender in the industry.
Apple has made significant financial commitments to projects, including $250 million for the miniseries “Masters of Air,” which did not achieve expected engagement. Additionally, the company has invested over $500 million in films from notable directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this substantial expenditure, Apple TV+ has captured only 0.2% of TV viewership in the United States, lagging far behind competitors like Netflix, which garners more views within a single day than Apple TV+ in an entire month. The service has faced challenges in attracting new subscribers.
Although Apple does not seem overly concerned about the performance of its streaming service, as it is not central to its business model, the company appears to be moving toward more prudent spending practices. Signs of this shift include hesitance to renew shows for a third season, according to Bloomberg’s data.
Notably, Apple TV+ remains the only major streaming platform without an advertising tier, but this may change soon with the hiring of Joseph Cady, a former NBCUniversal ad executive, earlier this year.