Apple is re-evaluating its spending on original content for Apple TV+ after reportedly investing around $20 billion without achieving the desired viewer engagement. According to Bloomberg, the company is discussing a shift in strategy, with Apple executive Eddy Cue meeting with studio heads Zack Van Amburg and Jamie Erlicht to discuss budget reductions. The aim is to distance the service from its reputation as the largest spender in the industry.
This extensive financial commitment includes significant expenditures such as $250 million for the miniseries “Masters of Air,” which had a lukewarm reception upon its release. Additionally, Apple has invested over $500 million on films from well-known directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its heavy investment, Apple TV+ commands only 0.2% of television viewership in the United States, garnering fewer views in a month than Netflix does in just one day. Subscriber growth has also been a challenge for the platform.
While Apple’s streaming service has not posed a significant concern for the tech giant, as it is not central to its core business model, the era of unlimited spending appears to be coming to an end. This shift is underscored by the company’s hesitance to renew shows for third seasons.
Notably, Apple TV+ is the last major streaming platform without an advertising tier, but this is poised to change following the appointment of ad executive Joseph Cady from NBCUniversal earlier this year.