Apple is reassessing its approach to Apple TV+, acknowledging that it has been excessively spending on original content that has largely gone unnoticed by audiences. According to Bloomberg, the company has invested around $20 billion in original programming.
Discussions are underway among Apple executives, including Eddy Cue, and studio chiefs Zack Van Amburg and Jamie Erlicht, regarding the need to limit budgets. Reports indicate that there is a desire within Apple to move away from its image as the industry’s top spender.
Some of its most significant outlays include $250 million for the miniseries “Masters of Air,” which saw minimal engagement upon release this year. Additionally, Apple has invested over $500 million in films from notable directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive investment, Apple TV+ captures only 0.2% of television viewership in the U.S., receiving fewer views in a month than Netflix does in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While these struggles may not be alarming for Apple, given that streaming is not a primary focus of its operations, the era of unrestrained spending appears to be coming to an end. This shift is already reflected in the company’s hesitance to renew shows for third seasons.
Notably, Apple TV+ is the last major streaming service without an advertising tier, a situation that may soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.