Apple is reassessing its spending on original content for Apple TV+, which has reportedly reached an astonishing $20 billion. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about controlling budgets more effectively. The studio executives have conveyed that the company is looking to move away from its image as the industry’s top spender.
Apple has invested heavily in productions, spending $250 million on the miniseries “Masters of Air” this year, which has garnered minimal attention. Additionally, the company has allocated more than $500 million for films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this significant financial commitment, Apple TV+ holds just 0.2% of television viewership in the United States, receiving fewer views in a month than Netflix achieves in just one day. The platform has faced challenges in growing its subscriber base.
While Apple TV+ has faced difficulties, they do not appear to be causing major concern for the tech giant, as streaming services are not central to its business model. However, the era of unrestricted spending seems to be coming to an end, particularly as indicated by the company’s hesitance to renew shows for a third season.
Apple TV+ currently stands out as the only major streaming service without an advertising tier, a situation that is expected to change following the hiring of advertising executive Joseph Cady from NBCUniversal earlier this year.