Apple is reassessing its spending on original content for Apple TV+, having invested an estimated $20 billion on shows and movies that have largely gone unnoticed by audiences. Reports suggest that Apple executive Eddy Cue is in discussions with studio heads Zack Van Amburg and Jamie Erlicht to scale back budgets and improve the streamer’s image, which has been labeled as the industry’s largest spender.
The company has made notable financial commitments, including $250 million for the miniseries “Masters of Air,” released this year with minimal impact. Furthermore, it has invested over $500 million in films directed by prominent filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite such substantial investments, Apple TV+ accounts for only 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix typically garners in just one day. The platform has also faced challenges in growing its subscriber base.
Although Apple does not rely heavily on streaming for its core business, the tech giant appears to be shifting away from its unlimited spending approach, as evidenced by its hesitation to renew shows for additional seasons. Additionally, Apple TV+ remains the last major streaming service without an ad-supported tier, a situation expected to change following the hiring of Joseph Cady, a former advertising executive from NBCUniversal, earlier this year.