Apple is reportedly reevaluating its spending strategies for Apple TV+, having invested around $20 billion in original content. Executives Eddy Cue, Zack Van Amburg, and Jamie Erlicht are engaging in discussions about reducing budgets to alter the platform’s image as a leading industry spender.
The streaming service has made significant financial commitments, such as $250 million for the miniseries “Masters of Air,” which garnered minimal attention upon its release. Additionally, the company has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ accounts for only 0.2% of television viewership in the United States, lagging behind platforms like Netflix, which can achieve more views in a single day than Apple TV+ does in an entire month. The platform’s subscriber growth has also been stagnant.
Although streaming is not a central focus for Apple, the company’s pattern of unrestricted spending appears to be coming to an end. This shift is evidenced by a hesitance to renew shows for third seasons. Apple TV+ remains unique among major streaming services for lacking an advertising tier, but this status may change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.