Apple is reassessing its spending on original content for Apple TV+ after investing an impressive $20 billion, according to Bloomberg. The tech giant recognizes that it is pouring money into shows and movies that have not gained widespread recognition.
Apple executive Eddy Cue has reportedly been discussing budget controls with studio heads Zack Van Amburg and Jamie Erlicht. They are reportedly working to shift the platform’s image from being the largest spender in the industry.
The company has made notable investments, such as the $250 million it spent on the miniseries “Masters of Air,” which released this year but received a lukewarm response. In addition, Apple has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this significant financial commitment, Apple TV+ commands just 0.2% of television viewership in the U.S. and attracts fewer viewers in a month than Netflix does within a single day. The platform has faced challenges in growing its subscriber base.
While these issues do not appear to be a major concern for Apple, as streaming is not a primary focus of its business, the era of unrestricted spending may soon be coming to an end. This is reflected in the company’s hesitance to renew shows for third seasons.
Notably, Apple TV+ is the last significant streaming service without an ad-supported tier, a situation that might change following the hiring of Joseph Cady, a former NBCUniversal ad executive, earlier this year.