Apple is reevaluating its spending on original content for Apple TV+ following a significant investment of around $20 billion. Reports from Bloomberg indicate that Apple executive Eddy Cue is in discussions with studio heads Zack Van Amburg and Jamie Erlicht to control budgets and mitigate the platform’s reputation as the biggest spender in the industry.
The company has invested heavily in high-profile projects, including $250 million on the miniseries “Masters of Air,” which did not gain much viewership upon release. Additionally, over $500 million has been spent on films by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this considerable financial outlay, Apple TV+ holds only 0.2% of television viewership in the United States and struggles to convert viewers into subscribers, often receiving fewer views in a month than Netflix achieves in just 24 hours. Although these challenges have not alarmed Apple, as streaming is not a primary focus of its business, it appears that the era of unrestricted spending may be coming to an end. This shift is evident in the company’s hesitance to renew shows for third seasons.
Notably, Apple TV+ is currently the final major streaming platform without an advertising tier, a situation that may soon change, especially after the company’s recent hiring of former NBCUniversal ad executive Joseph Cady.