Apple is reportedly reassessing its spending strategy on original content for Apple TV+, having invested an astounding $20 billion to date. According to Bloomberg, executive Eddy Cue has been in discussions with studio chiefs Zack Van Amburg and Jamie Erlicht about curbing production budgets, aiming to shift the platform’s image away from being the largest spender in the industry.
This year, Apple made headlines by investing $250 million in the miniseries “Masters of Air,” which ultimately garnered minimal audience engagement. The company has also spent over $500 million securing films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive financial commitment, Apple TV+ captures only 0.2% of television viewership in the U.S., with its monthly viewership figures falling far short of what Netflix achieves in just one day. Subscriber growth has also been challenging for the platform.
Although Apple does not place a primary focus on its streaming service, the company’s recent moves suggest that its unrestricted spending on content may be coming to an end. This is evident as it has shown hesitance to renew shows for third seasons, according to Bloomberg.
Currently, Apple TV+ stands out as the only major streaming service lacking an ad-supported tier. This situation is expected to evolve following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.