Apple is reevaluating its spending on original content for Apple TV+, having invested approximately $20 billion in shows and movies, many of which have not gained significant public attention, according to Bloomberg.
The company’s top executive, Eddy Cue, has recently engaged in discussions with Apple TV+ studio leaders Zack Van Amburg and Jamie Erlicht about scaling back budgets. They are reportedly working to change the streaming service’s image as the most extravagant spender in the industry.
Apple has made large financial commitments, such as a staggering $250 million for the miniseries “Masters of Air,” which saw limited viewership upon release. Additionally, the platform has invested over $500 million in films featuring prominent directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite extensive spending, Apple TV+ controls only 0.2% of television viewership in the U.S. and attracts far fewer viewers monthly than competitors like Netflix, which can garner more in just one day. The service has also faced challenges in growing its subscriber base.
Although Apple TV+’s struggles are not a primary concern for Apple, as streaming isn’t central to its business model, indications suggest that unrestricted spending may soon end. The company has already shown hesitance in renewing shows for third seasons, as reported by Bloomberg.
Currently, Apple TV+ stands out as the only major streaming service without an advertising tier. However, this may change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.