Apple is re-evaluating its spending on original content for Apple TV+ after investing an astonishing $20 billion in shows and movies that many viewers may not recognize.
According to reports, Apple executive Eddy Cue has been in discussions with the streaming service’s studio heads, Zack Van Amburg and Jamie Erlicht, about reducing production budgets. These executives have indicated a desire for the platform to move away from its image as the biggest spender in the industry.
Despite lavish expenditures, including $250 million for the miniseries “Masters of Air,” which did not make a significant impact upon release, Apple TV+ has been unable to substantially grow its viewer base. The service captures only 0.2% of television viewership in the US, attracting fewer viewers in one month than Netflix does in just 24 hours. Additionally, the platform has experienced difficulties in increasing its subscriber count.
Though Apple TV+ is experiencing challenges, these issues have not raised alarms within the broader company, as streaming is not central to Apple’s core business model. However, there are indications that the era of unlimited spending may be coming to an end, as reflected in the company’s hesitance to renew shows for a third season.
Currently, Apple TV+ stands out as the only major streaming service without an advertising-supported tier, a situation likely to change following the appointment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.