Apple is reassessing its spending on original content for Apple TV+, having invested an astounding $20 billion in shows and movies that many viewers may be unfamiliar with.
According to reports, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about the need to cut budgets and alter the company’s image as the industry’s biggest spender.
Apple has made significant financial commitments, such as $250 million for the miniseries “Masters of Air,” which premiered this year with minimal impact. The company has also spent over $500 million on films directed by notable filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this vast investment, Apple TV+ holds only 0.2% of television viewership in the United States, accumulating fewer views in a month than Netflix receives in just 24 hours. The streaming service has also faced challenges in growing its subscriber base.
The tech giant does not appear overly concerned with these challenges, as streaming is not central to its business model. However, indications suggest that its era of unrestricted spending may be coming to an end, especially as signaled by its hesitance to renew shows for third seasons.
Notably, Apple TV+ is the last major streaming platform without an advertising tier, but this may soon change following the hiring of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.