Apple is reportedly reassessing its spending on original content for Apple TV+, having invested approximately $20 billion on shows and movies that have gone largely unnoticed by audiences, according to Bloomberg.
Apple executive Eddy Cue has been engaging with the studio heads, Zack Van Amburg and Jamie Erlicht, to discuss reducing budgets. The studio heads have indicated a desire to move away from being viewed as the industry’s largest spender on content.
The tech giant has invested significant amounts in productions, including $250 million for the miniseries “Masters of Air,” which premiered this year but received minimal viewership. Additionally, Apple TV+ has spent over $500 million acquiring films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial financial commitments, Apple TV+ captures just 0.2% of television viewership in the US, attracting fewer viewers in one month than Netflix garners in just 24 hours. The service has also faced challenges in growing its subscriber base.
While the streaming platform’s struggles haven’t raised alarms within Apple, given that streaming is not central to its business model, the company appears to be moving away from unrestricted spending. This shift has already been indicated by its reluctance to renew certain shows for third seasons.
Apple TV+ currently stands out as the only major streaming platform without an advertisement-supported tier, a situation that may change following the recruitment of Joseph Cady, who joined from NBCUniversal earlier this year.