Apple is reportedly reassessing its spending on original content for Apple TV+, having invested an astounding $20 billion in shows and movies, many of which remain largely unknown to audiences.
According to a report from Bloomberg, Apple executive Eddy Cue is in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. The executives have indicated that the streaming service aims to shake off its image as the industry’s largest spender.
The company has made substantial financial commitments for original programming, including a staggering $250 million for the miniseries “Masters of Air,” which premiered this year but failed to gain significant viewer traction. Additionally, Apple has invested over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these hefty expenditures, Apple TV+ captures just 0.2% of television viewership in the United States, drawing fewer viewers in a month than Netflix attracts within a single day. The service has also faced challenges in growing its subscriber base.
Although Apple does not prioritize streaming as a core aspect of its business, the company appears to be curtailing its previously limitless spending. Evidence of this shift includes a reluctance to renew shows for third seasons.
Notably, Apple TV+ remains the only significant streaming platform without an advertising tier, a situation likely to change following the hiring of advertising executive Joseph Cady from NBCUniversal earlier this year.