Apple is reevaluating its spending on original content for Apple TV+, having invested approximately $20 billion in shows and films, many of which are not widely recognized. According to reports, Apple executive Eddy Cue is in discussions with studio heads Zack Van Amburg and Jamie Erlicht to reduce budgets and transform the service’s image from being the largest spender in the industry.
The tech giant has made significant financial commitments for its productions, including a $250 million investment in the miniseries “Masters of Air,” which underperformed upon release. Additionally, it has allocated over $500 million for films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these efforts, Apple TV+ accounts for only 0.2% of television viewership in the US, with its monthly viewership trailing far behind competitors like Netflix, which receives more views in just one day. The service has also encountered challenges in boosting subscriber numbers.
Although Apple has not appeared overly concerned about these issues, given that streaming is not its primary focus, it seems to be moving towards a more cautious approach to spending. This includes hesitance to renew shows for third seasons, as suggested by recent data. Furthermore, Apple TV+ remains the only major streaming platform without an advertising tier, a situation that may soon change with the recent hire of Joseph Cady, an advertising executive from NBCUniversal.