Apple is reportedly reassessing its spending strategy on original content for Apple TV+, having invested around $20 billion in shows and movies that many viewers may not recognize. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio chiefs Zack Van Amburg and Jamie Erlicht about reducing production budgets as the platform seeks to move away from its image as the industry’s largest spender.
The company has made significant financial commitments, such as the $250 million spent on the miniseries “Masters of Air,” which failed to capture audience attention upon its release. Additionally, Apple has invested over $500 million in films from renowned directors including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this considerable investment, Apple TV+ accounts for only 0.2% of television viewership in the United States, lagging far behind competitors like Netflix, which garners more views in just 24 hours than Apple does in an entire month. Apple has also faced challenges in boosting its subscriber base.
While the streaming service’s financial struggles have not raised alarms within the broader Apple business, which prioritizes hardware and software sales, the trend of unlimited spending appears to be drawing to a close. Signs of this shift are apparent in the company’s hesitance to renew shows for third seasons.
Notably, Apple TV+ is the last major streaming platform yet to introduce an ad-supported tier, a situation that may soon change following the hiring of Joseph Cady, a former executive from NBCUniversal, earlier this year.