Apple is reassessing its spending on original content for Apple TV+, having reportedly invested around $20 billion on shows and movies that may not have gained significant audience recognition. According to Bloomberg, Apple executive Eddy Cue has been discussing budget cuts with studio heads Zack Van Amburg and Jamie Erlicht, as they seek to shift the service’s image away from being the industry’s highest spender.
The company has poured considerable sums into productions, including $250 million for the miniseries “Masters of Air,” which launched this year but failed to make a substantial impact. It has also invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ commands only 0.2% of television viewership in the U.S., drawing fewer viewers in a month than Netflix achieves in a single day. The service has faced challenges in growing its subscriber base.
While these setbacks have not raised alarm within Apple, given that streaming is not a primary focus of its business, the company appears to be moving away from unrestricted spending. This shift is reflected in their hesitance to renew shows for third seasons.
Additionally, Apple TV+ remains the last significant streaming service without an advertising tier, a situation that is likely to change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.