Apple is reportedly reassessing its spending habits on original content for Apple TV+, following significant investments that have not yielded expected viewership results. The company has spent approximately $20 billion on content amid concerns that it is overspending on shows and movies that are largely unnoticed by audiences.
Executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets, as there is a desire to move away from being perceived as the industry’s largest spender. Notable expenditures include $250 million on the miniseries “Masters of Air,” which struggled to capture audience attention, as well as over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
In the United States, Apple TV+ accounts for only 0.2% of TV viewership, attracting far fewer viewers in a month than Netflix does in just a single day. Additionally, the platform has faced challenges in increasing its subscriber base.
Despite these issues, Apple does not appear overly concerned, as streaming is not central to its business model. However, the company seems to be signaling a shift in its spending strategy, indicated by its hesitation to renew many shows for third seasons.
Apple TV+ remains unique among major streaming services as it does not offer an ad-supported tier, a situation that could change following the hiring of Joseph Cady, a former advertising executive from NBCUniversal, earlier this year.