Apple is reassessing its spending on TV shows and movies, acknowledging that it has invested heavily in original content that users may not even be aware of. According to Bloomberg, the tech giant has spent around $20 billion on Apple TV+, and executive Eddy Cue has conducted meetings with studio heads Zack Van Amburg and Jamie Erlicht to discuss tightening budgets.
They are reportedly aiming to change the platform’s image as the industry’s largest spender. Notably, Apple shelled out $250 million for the miniseries “Masters of Air,” which failed to generate significant interest upon its release. Additionally, the company has spent over $500 million on films from prominent directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its massive expenditures, Apple TV+ holds a mere 0.2% share of TV viewership in the United States, with its monthly viewing numbers falling short of Netflix’s within just 24 hours. The platform has also faced challenges in attracting new subscribers.
Although streaming is not a central part of Apple’s business strategy, the company appears to be shifting away from unlimited spending. This change is suggested by its reluctance to renew certain shows for third seasons. Furthermore, Apple TV+ is currently the only major streaming service without an ad-supported tier, but this might soon change following the hiring of Joseph Cady, a former advertising executive from NBCUniversal, earlier this year.