Apple is reportedly reevaluating its spending on original content for Apple TV+, having allocated an astounding $20 billion in recent years, according to Bloomberg. The company’s executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about curbing budgets and moving away from the reputation of being the most extravagant spender in the industry.
Significant investments include $250 million for the miniseries “Masters of Air,” which launched earlier this year with minimal impact. Additionally, Apple has invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive expenditure, Apple TV+ holds only 0.2% of television viewership in the United States, significantly trailing behind competitors like Netflix, which garners more views in just one day than Apple TV+ does in an entire month. The platform has also faced challenges in attracting new subscribers.
While these challenges might not pose a major concern for Apple since streaming is not its primary focus, the company seems to be signaling an end to its unrestrained spending practices. This shift is evident in its hesitance to renew shows for third seasons, as indicated by Bloomberg data.
Currently, Apple TV+ remains the last major streaming service without an advertising tier, although this may change following the hiring of Joseph Cady, a veteran ad executive from NBCUniversal, earlier this year.