Apple is re-evaluating its spending on original content for its streaming service Apple TV+, following a reported expenditure of around $20 billion. Bloomberg reveals that Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht regarding budget cuts. The aim is to distance the platform from its image as the industry’s largest spender.
For instance, Apple invested $250 million into the miniseries “Masters of Air,” which struggled to gain traction after its release this year. Additionally, the company has spent over $500 million on films directed by prominent filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this significant investment, Apple TV+ has succeeded in attracting only 0.2% of TV viewership in the United States, accumulating fewer views in an entire month than Netflix receives in just 24 hours. The service has faced challenges in growing its subscriber base as well.
While the streaming segment is not central to Apple’s overall business strategy, the company seems to be shifting away from its previous strategy of unlimited spending. This change is reflected in its hesitance to renew certain series for third seasons. Furthermore, Apple TV+ remains the only major streaming service without an ad-supported tier, though this may soon change following the recruitment of advertising executive Joseph Cady from NBCUniversal earlier this year.