Apple is reassessing its spending on original content for its streaming platform, Apple TV+. The company has reportedly spent about $20 billion on shows and movies, many of which have gone largely unnoticed by audiences.
Bloomberg has revealed that Apple executive Eddy Cue is in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets and changing the perception of Apple TV+ as the industry’s largest spender. Huge investments have included a notable $250 million for the miniseries “Masters of Air,” which performed poorly after its release.
In addition, Apple has invested over $500 million in films from acclaimed directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn. Despite this extensive spending, Apple TV+ holds only 0.2% of US TV viewership, receiving fewer views in a month than Netflix garners within just 24 hours. The platform has also had difficulty attracting new subscribers.
While streaming is not central to Apple’s overall business strategy, the company appears to be moving away from limitless expenditure. This is reflected in its hesitance to renew series for third seasons, according to Bloomberg’s analysis. Notably, Apple TV+ remains the only major streaming service without an advertisement-supported tier, but this may change following the hiring of NBCUniversal ad executive Joseph Cady earlier this year.