Apple is reportedly reassessing its spending strategy for Apple TV+ after investing approximately $20 billion in original content. According to Bloomberg, company executive Eddy Cue has been in discussions with studio leaders Zack Van Amburg and Jamie Erlicht about reducing production budgets. The intent is to alter the streamer’s image as the largest spender in the industry.
Apple has made substantial investments in various projects, including the miniseries “Masters of Air,” which cost $250 million but has garnered minimal audience interest since its release. Additionally, the platform has spent over $500 million on films from notable directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this significant financial outlay, Apple TV+ holds a mere 0.2% of TV viewership in the United States, with its monthly audience figures falling short of what Netflix achieves in just 24 hours. The platform has also encountered challenges in growing its subscriber base.
Although Apple does not prioritize streaming as a core business, the company appears to be shifting away from its previously boundless spending habits. This change is evident in its hesitance to renew certain shows for a third season. Furthermore, Apple TV+ remains the only major streaming service without an advertising tier, a situation expected to change following the recent hiring of ad executive Joseph Cady from NBCUniversal.