Apple is reevaluating its spending on original content for its streaming service Apple TV+, according to reports. The company has invested approximately $20 billion on shows and movies that have not gained significant public recognition or viewership.
Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. Reports indicate that the team aims to move away from Apple TV+ being known as the largest spender in the industry.
The company has made sizable investments for specific projects, including $250 million for the miniseries “Masters of Air,” which received minimal viewer engagement upon release. Additionally, Apple TV+ has spent over $500 million on films from notable directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this substantial financial commitment, Apple TV+ holds only 0.2% of the TV viewership in the United States, with its monthly views significantly trailing behind those of competitors like Netflix, which can garner more views in just one day. The platform has also faced challenges in growing its subscriber base.
Although Apple has not prioritized its streaming service as a core part of its business, it appears to be shifting away from unrestricted spending. This change is reflected in its hesitance to renew shows for third seasons, as noted in recent data. Furthermore, Apple TV+ remains the only major streaming service without an ad-supported tier, but this may soon change following the hiring of Joseph Cady, a former ad executive from NBCUniversal.