Apple is reassessing its spending on original content for Apple TV+, having invested around $20 billion in television shows and movies that have not gained much public recognition, according to a report from Bloomberg.
Company executive Eddy Cue has been in discussions with Apple TV+’s studio heads, Zack Van Amburg and Jamie Erlicht, about reducing budgets in light of the streaming service’s need to move away from its image as the industry’s largest spender.
Apple has made significant financial commitments for content, including $250 million for the miniseries “Masters of Air,” which debuted this year but failed to generate significant viewership. Additionally, the platform has invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial investments, Apple TV+ captures only 0.2% of TV viewership in the United States, often attracting fewer views in a month than Netflix does in just 24 hours. Subscriber growth has also been a challenge for the platform.
While Apple has not prioritized streaming as a core component of its business, signs indicate it may curtail its expansive spending approach. The company has shown hesitation in renewing series for third seasons, as detailed in Bloomberg’s analysis.
Currently, Apple TV+ is the only major streaming service that does not offer an advertising tier. However, this may change following the recent hiring of Joseph Cady, a former advertising executive from NBCUniversal.