Apple is reportedly reevaluating its spending on original content for its streaming service, Apple TV+, after investing around $20 billion on shows and movies, many of which have not gained significant attention. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to consider budget cuts and shift the platform’s identity away from being seen as the industry’s highest spender.
The company has invested substantial amounts, including $250 million for the miniseries “Masters of Air,” which underperformed upon release. Additionally, over $500 million has been allocated for films directed by prestigious filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive investment, Apple TV+ holds a mere 0.2% share of TV viewership in the United States, attracting fewer viewers in a month than Netflix does in just 24 hours. The service has also faced challenges in boosting its subscriber numbers.
Although Apple’s difficulties in the streaming area have not raised major concerns within the company, given that streaming is not a primary component of its business model, it appears that the era of unrestricted spending may be coming to an end. This shift is indicated by the company’s hesitance to renew shows for third seasons.
Moreover, Apple TV+ remains the only major streaming platform without an advertising tier, a situation that may soon change following the recent hiring of ad executive Joseph Cady from NBCUniversal.