Apple is reportedly reassessing its spending on original content for its streaming service, Apple TV+, after investing around $20 billion. This comes as the company seeks to shift its approach to content production, according to a report by Bloomberg.
Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about controlling budgets more effectively. The studio heads have indicated a desire to change the perception of Apple TV+ as the industry’s biggest spender on content.
The company made significant investments in shows and films, including a staggering $250 million for the miniseries “Masters of Air,” which did not achieve expected viewership. Additionally, it has spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these large expenditures, Apple TV+ holds just 0.2% of television viewership in the United States, garnering fewer views in a month than Netflix typically attracts in a single day. The service has also faced challenges in growing its subscriber base.
While Apple’s streaming issues have not raised significant concern within the company—given that streaming is not a primary focus of its business—it appears that the era of unlimited spending is coming to an end. This shift is evidenced by the company’s hesitance to renew shows for additional seasons.
Furthermore, Apple TV+ remains the only major streaming platform without an advertising tier, a situation that may change following the hiring of Joseph Cady, a former advertising executive from NBCUniversal, earlier this year.