Apple is reassessing its spending on original content for Apple TV+ after reportedly investing an impressive $20 billion in shows and movies that many viewers may not recognize. According to Bloomberg, the company is shifting its strategy in light of this significant expenditure.
Eddy Cue, an Apple executive, has been in discussions with Zack Van Amburg and Jamie Erlicht, the heads of Apple TV’s studio operations, to rein in production budgets. Reports suggest that the team is keen on changing the perception of Apple TV+ as the largest spender in the industry.
Apple has invested notable amounts in its productions, including $250 million on the miniseries “Masters of Air,” which was released this year but did not gain much attention. Furthermore, the company has allocated over $500 million for films from acclaimed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its massive financial commitment, Apple TV+ commands only 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix does in just one day. The platform has faced challenges in growing its subscriber base.
While Apple TV+’s difficulties have not triggered immediate concern within the broader tech company—given that streaming is not a primary focus for Apple—its unlimited spending approach may soon come to an end. This change has already been hinted at by its hesitation to renew shows for third seasons, as indicated by Bloomberg data.
Notably, Apple TV+ remains the last major streaming platform without an advertisement-supported tier. However, this may change following the recent hiring of Joseph Cady, a former NBCUniversal advertising executive.