Apple is reevaluating its approach to original content for Apple TV+ after reportedly spending around $20 billion on programming that has garnered little public recognition.
Sources indicate that Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to cut back on budgets. The duo has also communicated a desire to shift the platform’s image away from being the largest spender in the industry.
Apple’s substantial investments include $250 million for the miniseries “Masters of Air,” which premiered this year but failed to achieve significant viewer engagement. The company has also spent over $500 million on films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive financial commitment, Apple TV+ holds merely 0.2% of television viewership in the US, attracting fewer views each month than Netflix receives in just a single day. Additionally, the platform has faced challenges in growing its subscriber base.
While Apple TV+’s struggles do not seem to concern the tech giant—given that streaming is not central to its overall business—there are indications that the era of unrestricted spending may be coming to an end. This shift is evident in the company’s hesitance to renew shows for third seasons.
Moreover, Apple TV+ remains the last major streaming service without an advertising tier, a situation likely to change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.