Apple is reportedly reassessing its spending on original content for Apple TV+, having invested an astounding $20 billion in shows and movies that many viewers may not recognize. According to Bloomberg, the company’s senior vice president, Eddy Cue, has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets. The studio executives have indicated that Apple TV+ aims to move away from its reputation as the largest spender in the industry.
In its quest for original programming, Apple has made significant financial commitments, including $250 million for the miniseries “Masters of Air,” which was released this year but received minimal attention. Additionally, the streamer has invested over $500 million in films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its substantial financial outlay, Apple TV+ only holds 0.2% of TV viewership in the United States, attracting fewer viewers in a month than Netflix does in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While Apple does not prioritize streaming as a core aspect of its business, the trend of unrestricted spending appears to be coming to an end, as indicated by its hesitance to renew shows for third seasons, according to Bloomberg data. Notably, Apple TV+ is the last major streaming service without an advertising tier, a situation that could change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.