Apple is reportedly reassessing its hefty spending on original content for its streaming service, Apple TV+, after investing around $20 billion. According to Bloomberg, executives Eddy Cue, Zack Van Amburg, and Jamie Erlicht are considering budget cuts and seeking to shift the perception of Apple TV+ as the industry’s most extravagant spender.
The company has made significant financial commitments, including $250 million for the miniseries “Masters of Air,” which saw a lukewarm reception upon release this year. Additionally, Apple has invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its substantial expenditures, Apple TV+ claims a mere 0.2% share of television viewership in the United States, garnering fewer views in a month than Netflix achieves in just 24 hours. The platform has also faced challenges in subscriber growth.
Although streaming is not a primary focus for Apple, and the company appears unfazed by the issues facing Apple TV+, it seems that the era of limitless spending may be coming to an end. This shift is reflected in the company’s hesitance to extend contracts for third seasons of existing shows.
Currently, Apple TV+ is the only major streaming service without an advertising tier, but this could change soon following the hiring of Joseph Cady from NBCUniversal, indicating potential plans to introduce ad-supported options.