Apple is reassessing its spending on original content for Apple TV+, having reportedly invested around $20 billion in shows and movies. According to Bloomberg, the company recognizes that it is allocating excessive funds to projects that have not gained widespread recognition.
Meetings have taken place between Apple executive Eddy Cue and studio heads Zack Van Amburg and Jamie Erlicht, focusing on managing production budgets more effectively. There are indications that the streaming service aims to alter its image as the biggest spender in the industry.
Notable expenditures include $250 million for the miniseries “Masters of Air,” which received minimal audience engagement upon its release this year. Furthermore, Apple has invested over $500 million in films directed by high-profile filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this heavy financial commitment, Apple TV+ holds a meager 0.2% share of U.S. television viewership, garnering fewer views in a month than Netflix averages in just 24 hours. The platform has also faced challenges in boosting its subscriber base.
While Apple’s streaming challenges have not caused severe concern given that it’s not a central element of its business model, the company’s era of limitless spending appears to be winding down. This shift is becoming apparent with its hesitance to renew shows for a third season, as indicated by Bloomberg data.
Apple TV+ stands out as the last major streaming service without an ad-supported option, a situation poised to change following the company’s hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.