Apple is reassessing its approach to original content on Apple TV+ after reportedly spending an astonishing $20 billion, much of which has been on productions that have gone under the radar. According to a report from Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets, signaling a desire to change the platform’s image as the biggest spender in the industry.
Apple’s hefty investments include $250 million for the miniseries “Masters of Air,” which was released this year but failed to attract significant viewership. Additionally, the company has spent over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive expenditure, Apple TV+ holds only 0.2% of the U.S. TV viewership, with its monthly views being overshadowed by Netflix’s figures in just a single day. The platform has also faced challenges in growing its subscriber base.
While Apple has not shown significant concern over these issues, given that streaming is not central to its business strategy, it appears that the era of unrestricted spending may be coming to an end. This is evidenced by the company’s hesitance to renew shows for third seasons, as indicated by Bloomberg’s findings.
Notably, Apple TV+ is the only major streaming service currently without an advertising tier, although this could change following the hire of Joseph Cady, a former NBCUniversal advertising executive, earlier this year.