Apple is reevaluating its spending strategy for Apple TV+, following reports that the company has invested around $20 billion in original content, much of which is not well-known to viewers. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about curbing production budgets. They have indicated a desire to move away from being perceived as the industry’s largest spender.
Apple has made significant investments in high-profile projects, such as the $250 million miniseries “Masters of Air,” which did not achieve notable success upon release this year. The streaming service has also spent over $500 million on films by renowned directors including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the considerable financial outlay, Apple TV+ accounts for just 0.2% of TV viewership in the U.S., receiving fewer views in a month than Netflix garners in just 24 hours. The service has also faced challenges in attracting new subscribers.
Although streaming is not central to Apple’s core business operations, the company’s lavish spending appears to be shifting as evidenced by its hesitance to renew series for third seasons. Apple TV+ remains the only major streaming platform without an ad-supported tier, a situation that may soon change, especially after the recent hiring of advertising executive Joseph Cady from NBCUniversal.