Apple is reevaluating its spending on original content for Apple TV+, reportedly having spent around $20 billion on shows and movies that have not resonated with audiences. This shift in strategy comes after company executives Eddy Cue, Zack Van Amburg, and Jamie Erlicht held discussions about curtailing production budgets, with a goal to move away from being known as the highest spender in the industry.
Apple’s significant financial commitments include a staggering $250 million for the miniseries “Masters of Air,” which debuted this year but failed to capture substantial viewership. Additionally, the company has invested over $500 million on films directed by notable filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ holds a meager 0.2% share of TV viewership in the U.S., receiving fewer views monthly than Netflix does in just one day. The platform has faced challenges in growing its subscriber base, but Apple appears relatively unconcerned given that streaming is not central to its business model. However, the era of unlimited spending may be coming to an end, as indicated by the company’s hesitance to renew shows for third seasons.
Apple TV+ currently stands out as the only major streaming service without an advertisement-based subscription tier, a situation that could change following the recent hiring of ad executive Joseph Cady from NBCUniversal.