Apple is reportedly reassessing its spending on original television shows and movies for Apple TV+, having invested an estimated $20 billion in content. According to Bloomberg, Apple executive Eddy Cue has been engaging with studio heads Zack Van Amburg and Jamie Erlicht to discuss budget cuts. The duo has been conveying a desire to change the platform’s image as the biggest spender in the industry.
The tech giant has made significant investments, including $250 million for the miniseries “Masters of Air,” which has underperformed since its release this year. It has also spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its substantial financial outlay, Apple TV+ commands only 0.2% of TV viewership in the United States, attracting fewer viewers in a month than Netflix receives in just 24 hours. The platform has also faced challenges in growing its subscriber base.
Apple’s current strategy has not greatly concerned the company, as streaming is not central to its business model. However, signs indicate that the era of unrestricted spending may soon end, reflected by a hesitance to renew shows for third seasons, according to Bloomberg’s analysis.
Interestingly, Apple TV+ remains the last major streaming service without an ad-supported tier. This may change soon, as the company hired ad executive Joseph Cady from NBCUniversal earlier this year.