Apple is re-evaluating its spending on original content for Apple TV+, reportedly having invested around $20 billion on shows and movies that many viewers may not be aware of. According to Bloomberg, Apple executive Eddy Cue has been in discussions with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, about reducing production budgets. The studio chiefs are also said to be aiming to improve Apple’s image of being the largest spender in the industry.
The company has made substantial financial commitments for various projects, including $250 million for the miniseries “Masters of Air,” which faced underwhelming viewership upon its release this year. Additionally, Apple TV+ has spent over $500 million on films from notable directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this significant investment, Apple TV+ accounts for only 0.2% of television viewership in the US, and its monthly viewership is reportedly less than what Netflix achieves within a single day. Subscriber growth has also been a challenge for the platform.
While Apple may not be overly concerned with these struggles, as streaming services are not central to its business model, it appears that its era of unlimited spending is nearing an end. Evidence of this shift includes the company’s hesitance to renew shows for third seasons, as noted by Bloomberg.
Currently, Apple TV+ is the last major streaming service that does not offer an ad-supported tier. However, this may soon change, following the recent hiring of Joseph Cady, a former ad executive from NBCUniversal.