Apple is reassessing its spending strategy for original content on Apple TV+, having reportedly invested around $20 billion on shows and movies that haven’t gained significant visibility. According to a Bloomberg report, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets and shifting away from the perception of being the highest spender in the industry.
The tech giant has made substantial financial commitments, including $250 million for the miniseries “Masters of Air,” which did not perform well upon release. It has also invested over $500 million on films directed by acclaimed filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this heavy investment, Apple TV+ holds only 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix does in just one day, and the service has struggled to significantly grow its subscriber base. Although Apple does not appear overly concerned with these issues, given that streaming is not central to its business, signs indicate that its era of unrestricted spending may be coming to an end. This is evidenced by its hesitance to renew shows for third seasons.
Currently, Apple TV+ is the only major streaming service that does not offer an ad-supported tier, but this may soon change following the hire of Joseph Cady, a former advertising executive from NBCUniversal.