Apple is reevaluating its spending strategies on original content for Apple TV+ after investing approximately $20 billion, according to reports from Bloomberg. The company’s executive, Eddy Cue, has reportedly been in discussions with Apple TV+’s studio heads, Zack Van Amburg and Jamie Erlicht, about possibly reducing production budgets. The duo has been vocal about shifting the streamer’s focus away from being known as the industry’s largest spender.
This scrutiny comes in light of significant expenditures on shows and films, including a notable $250 million on the miniseries “Masters of Air,” which has garnered minimal public interest. Furthermore, Apple has invested over $500 million on films from well-known directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these extensive investments, Apple TV+ claims only 0.2% of TV viewership in the United States, attracting significantly fewer viewers in a month than Netflix does in just one day. Apple has also encountered challenges in growing its subscriber base.
Although the streaming sector is not central to Apple’s overall business model, the company seems to be signaling a shift away from its previous approach of unlimited spending. This is evidenced by their hesitance to renew certain shows for third seasons, as reported by Bloomberg.
Notably, Apple TV+ is currently the only major streaming service without an ad-supported tier, but this may soon change following the recent hiring of advertising executive Joseph Cady from NBCUniversal.