Apple is reportedly reevaluating its spending on original content for Apple TV+, having invested around $20 billion in shows and movies that have often gone unnoticed by audiences. The company is considering a more budget-conscious approach, as executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about curtailing expenses. The goal is to move away from being perceived as the largest spender in the industry.
Among its costly endeavors, Apple allocated $250 million for the miniseries “Masters of Air,” which did not capture significant viewer interest upon release. Additionally, more than $500 million has been spent on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this substantial investment, Apple TV+ commands only 0.2% of TV viewership in the US, with its monthly audience smaller than the daily viewership of Netflix. The platform has faced challenges in growing its subscriber base.
While Apple has not seemed overly concerned with the streaming service’s struggles, as it is not central to its overall business model, signs suggest that the era of unrestricted spending may be coming to an end, as indicated by a hesitance to renew series for third seasons.
Notably, Apple TV+ remains the only major streaming platform without an advertising tier, but this may change following the hiring of Joseph Cady, a former NBCUniversal advertising executive, earlier this year.