Apple is reportedly recognizing that it’s investing excessively in original television shows and movies that are largely unfamiliar to viewers. The tech giant is reconsidering its expansive spending strategy for Apple TV+, having allocated around $20 billion on content, according to a Bloomberg report.
Apple executive Eddy Cue has been discussing budget moderation with studio heads Zack Van Amburg and Jamie Erlicht. The duo has been communicating a desire to alter the platform’s reputation as the largest spender in the industry.
The company has made significant financial commitments, including $250 million for the miniseries “Masters of Air,” which launched this year without making a notable impact. Additionally, Apple has invested over $500 million on films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its substantial expenditures, Apple TV+ captures merely 0.2% of the U.S. TV viewership, garnering fewer views in a month compared to what Netflix averages in just one day. The service has also faced challenges in boosting subscriber numbers.
Although Apple TV+’s struggles have not raised alarms within the broader company—given that streaming is not a central focus of its business—the era of unrestricted spending appears to be coming to an end. This is underscored by its hesitance to renew shows for third seasons, as indicated by Bloomberg’s findings.
Notably, Apple TV+ remains the only major streaming platform without an advertising tier, a situation likely to change following the hiring of Joseph Cady, a former NBCUniversal ad executive, earlier this year.