Apple is reassessing its substantial spending on original content for Apple TV+, having invested around $20 billion in shows and movies that many viewers may not recognize. According to a report from Bloomberg, Apple executive Eddy Cue has been holding discussions with studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets. The studio chiefs have indicated that the platform is looking to alter its status as the biggest spender in the industry.
Notable financial commitments include $250 million for the miniseries “Masters of Air,” which debuted this year but garnered limited audience interest. Additionally, Apple has invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its heavy expenditures, Apple TV+ holds a mere 0.2% share of TV viewership in the United States, attracting fewer viewers in a month than Netflix accumulates in just one day. The platform has struggled to grow its subscriber base, but this has not caused major concern for Apple, as streaming does not constitute a core aspect of its business model. Nonetheless, indications suggest that its era of unchecked spending may soon come to an end, evident from its hesitation to renew shows for third seasons.
Additionally, Apple TV+ remains the only major streaming service not offering an ad-supported tier. However, this may soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.