Apple is reportedly reassessing its spending on original content for Apple TV+, having invested a staggering $20 billion on shows and movies, many of which have flown under the radar of viewers.
Bloomberg reveals that Apple executive Eddy Cue has been engaged in discussions with Apple TV+ executives Zack Van Amburg and Jamie Erlicht about tightening budgets and moving away from the image of being the largest spender in the industry.
The company has made significant financial commitments to projects, including a $250 million investment in the miniseries “Masters of Air,” which did not garner much attention upon its release. Additionally, Apple has invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial expenditures, Apple TV+ has only managed to capture 0.2% of television viewership in the United States, with its monthly viewers being outnumbered by Netflix’s daily viewership. The platform has also faced challenges in growing its subscriber base.
While streaming is not a primary focus for Apple, the company appears to be shifting away from its unrestricted spending approach. This is evident in their hesitance to renew several shows for a third season, as highlighted by Bloomberg’s findings.
Importantly, Apple TV+ remains the only major streaming service without an advertising tier, but this may change following the recent hiring of Joseph Cady, a former NBCUniversal executive, indicating a potential future direction for the platform.