Apple is reportedly reassessing its substantial investments in original content for Apple TV+, having spent around $20 billion on shows and films that many consumers may not recognize.
Bloomberg indicates that Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to tighten budgets and alter the perception of the platform as the industry’s largest spender. They have hinted at a desire to move away from this image.
The company has invested heavily in various projects, including $250 million on the miniseries “Masters of Air,” which received little audience engagement upon release this year. Additionally, it has spent over $500 million on films by prominent directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ commands only 0.2% of television viewership in the United States, with its monthly audience trailing behind Netflix’s viewership in just 24 hours. Subscriber growth has also been a challenge for the service.
While these streaming issues haven’t seemed to trouble Apple significantly, as streaming is not central to its business, the company’s approach towards future spending appears to be shifting. This is reflected in its hesitance to renew shows for third seasons.
Apple TV+ remains the only major streaming platform without an ad-supported option, but this could soon change with the recent hiring of Joseph Cady, an ad executive from NBCUniversal.