Apple is reassessing its expenditures on original content for Apple TV+, having reportedly spent around $20 billion on shows and movies, many of which have gone unnoticed by viewers.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about controlling costs. The two executives have indicated a desire for the streaming service to move away from its image as the most extravagant spender in the industry.
Significant outlays, such as the $250 million for the miniseries “Masters of Air,” released this year with little impact, highlight the company’s spending habits. Apple has also invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these expenditures, Apple TV+ commands only 0.2% of television viewership in the United States and struggles to add subscribers, facing significantly lower engagement compared to its competitors like Netflix.
While Apple’s core business is not reliant on streaming services, the company seems to be signaling a shift away from unlimited spending, as evidenced by its reluctance to renew shows for third seasons. Notably, Apple TV+ remains the only major streaming service without an advertisement-supported tier, a situation likely to change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.