Apple is reassessing its spending on television shows and movies, acknowledging that it has invested heavily in projects that have often gone unnoticed by audiences. The company reportedly spent an enormous $20 billion on original content for its streaming service, Apple TV+, and is now looking for ways to cut back on expenditures.
According to reports, Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht to trim budgets. The studio heads have communicated a desire to move away from being recognized as the highest spender in the industry.
Apple has made significant financial commitments for various shows and films, including $250 million for the miniseries “Masters of Air,” which had a lackluster reception following its release this year. Additionally, the company spent over $500 million to acquire films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this substantial investment, Apple TV+ holds only a 0.2% share of television viewership in the United States and garners fewer views in a month than Netflix achieves in a single day. The service has also struggled to grow its subscriber base.
While Apple TV+’s performance appears not to be a pressing concern for the overall tech giant—given that streaming is not a primary business focus—the era of unrestricted spending may be coming to an end. This is evidenced by the company’s hesitance to renew certain shows for third seasons.
Interestingly, Apple TV+ is the last major streaming platform yet to introduce an ad-supported tier. However, potential changes may be on the horizon, especially after the company brought on Joseph Cady, an advertising executive from NBCUniversal, earlier this year.