Apple is re-evaluating its spending on original content for Apple TV+, having spent nearly $20 billion on movies and television shows, many of which have gone largely unnoticed by viewers. According to reports, key executives at Apple TV+, including Eddy Cue, Zack Van Amburg, and Jamie Erlicht, are discussing ways to reduce budgets and shift the platform’s reputation away from being the industry’s largest spender.
The company has invested significant amounts in projects like the $250 million miniseries “Masters of Air,” which attracted minimal interest upon release. It has also invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this heavy investment in content, Apple TV+ holds only 0.2% of the U.S. TV viewership, lagging far behind competitors like Netflix, which garners more views in a day than Apple does in an entire month. Additionally, the service has struggled to grow its subscriber base.
While streaming is not a primary focus of Apple’s business model, the company’s future spending habits appear to be shifting. There are signs that its once-unlimited budget for content may soon be curtailed, particularly indicated by a hesitance to renew shows for third seasons. Notably, Apple TV+ remains the last major streaming service without an advertising-supported tier, although this could change after the recent hiring of ad executive Joseph Cady from NBCUniversal.