Apple is reassessing its spending strategy for television shows and movies, acknowledging that it has invested heavily—reportedly around $20 billion—into original content, much of which remains obscure to viewers.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about tightening budgetary constraints. The duo has been indicating that Apple TV+ aims to move away from its current image as the leading spender in the industry.
The company has expended substantial funds on projects like the miniseries “Masters of Air,” which cost $250 million but gained minimal audience engagement. Additionally, it has invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extravagant expenditure, Apple TV+ holds a mere 0.2% of television viewership in the US, garnering significantly fewer views in a month than Netflix does in just one day. The platform has also faced challenges in boosting subscriber numbers.
Although Apple does not view streaming as a core aspect of its business, the ongoing high spending appears to be waning. This shift is reflected in its hesitation to renew shows for third seasons, as indicated by Bloomberg’s analysis.
Currently, Apple TV+ stands out as the only major streaming service that does not offer an ad-supported tier. However, this may soon change, following the company’s recent recruitment of ad executive Joseph Cady from NBCUniversal earlier this year.