Apple is reportedly reassessing its spending strategies for Apple TV+ after investing an astonishing $20 billion in original content, according to Bloomberg. The tech giant has realized it may be spending excessively on shows and movies that have gone largely unnoticed by audiences.
Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about controlling budgets more effectively. The discussions have included a desire to shift away from the perception that Apple TV+ is the industry’s largest spender.
The company has made significant investments in projects, including $250 million for the miniseries “Masters of Air,” which debuted this year but failed to gain traction. Apple has also spent over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its considerable financial commitment, Apple TV+ holds a mere 0.2% share of TV viewership in the United States, with its monthly views falling short of what Netflix secures in just a single day. The platform has also faced challenges in attracting new subscribers.
Although Apple does not primarily rely on streaming for its business model, the company appears to be shifting its approach to spending, as evidenced by its hesitance to renew shows for third seasons. Notably, Apple TV+ is the last major streaming service yet to introduce an advertising tier, which may soon change with the recent hire of ad executive Joseph Cady from NBCUniversal.