Apple is reportedly reconsidering its spending strategy for Apple TV+, having invested an astonishing $20 billion in original content, as many of these projects have not gained significant attention or viewership.
According to Bloomberg, Apple executive Eddy Cue has held discussions with studio chiefs Zack Van Amburg and Jamie Erlicht about reducing budgets for new programming. The leadership is keen to move away from Apple TV+ being viewed as the highest spender in the streaming industry.
The company has made sizable investments in various productions, including $250 million for the miniseries “Masters of Air,” which failed to attract a strong audience upon its release. Additionally, it has allocated over $500 million for films featuring renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the substantial financial outlays, Apple TV+ holds only 0.2% of TV viewership in the United States, with its monthly viewership figures far overshadowed by Netflix’s rapid daily consumption. The service has also faced challenges in growing its subscriber base.
While Apple does not view streaming as a core component of its business, the company appears to be scaling back its once-limitless spending. This shift is evidenced by its hesitance to renew shows for third seasons.
Furthermore, Apple TV+ remains the last major streaming platform without an advertising tier, a status that may soon change following the hiring of Joseph Cady, an ad executive from NBCUniversal, earlier this year.