Apple is reportedly reassessing its extensive spending on original content for Apple TV+, having invested around $20 billion in shows and movies that many viewers may not be familiar with. According to Bloomberg, Apple executive Eddy Cue has been in discussions with the heads of Apple TV+, Zack Van Amburg and Jamie Erlicht, about scaling back budgets.
Van Amburg and Erlicht have indicated that the streaming service is eager to move away from its image as the biggest spender in the industry. Apple has made significant investments, such as the $250 million it spent on the miniseries “Masters of Air,” which released this year but failed to gain substantial viewership. Furthermore, the platform has invested over $500 million on films from renowned directors including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this considerable expenditure, Apple TV+ captures only 0.2% of television viewership in the United States, with its monthly viewership falling short of what Netflix achieves in just 24 hours. The platform has faced challenges in growing its subscriber base, but this has not caused major concern for the tech giant as streaming is not central to its overall business model. Nevertheless, indications suggest that Apple is moving away from its previously unlimited spending approach, as reflected in its hesitance to renew shows for a third season.
Additionally, Apple TV+ remains the only notable streaming service without an advertising tier, a situation that may change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.