Apple is reevaluating its spending on original content for its streaming service Apple TV+, having reportedly invested around $20 billion in shows and movies that many viewers may not recognize. According to Bloomberg, Apple executive Eddy Cue has been in discussions with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, to consider budget reductions and to improve the service’s perception as the largest spender in the industry.
The company has made significant expenditures for various productions, including $250 million for the miniseries “Masters of Air,” which saw limited audience engagement upon its release this year. Additionally, Apple has spent over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive investment, Apple TV+ captures only 0.2% of television viewership in the United States, receiving significantly fewer views in a month than Netflix does in just 24 hours. The platform has also faced challenges in attracting new subscribers.
While Apple’s core business does not heavily rely on streaming, the company’s tendency to spend without restraint appears to be coming to an end. This shift is evident in its cautiousness regarding the renewal of series for third seasons.
Currently, Apple TV+ is unique among major streaming services as it lacks an advertising tier, but this may soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.