Apple is re-evaluating its spending strategy for Apple TV+ after reportedly investing around $20 billion in original content that has not garnered widespread recognition.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about managing production budgets more effectively. They have expressed a desire to move away from being seen as the industry’s highest spender.
Apple has invested substantial amounts in exclusive projects, including $250 million for the miniseries “Masters of Air,” which premiered this year with minimal impact. The company has also spent over $500 million on films from prominent directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this considerable financial outlay, Apple TV+ accounts for only 0.2% of television viewership in the United States, attracting far fewer viewers in a month than Netflix does in a single day. Additionally, the platform has had challenges in growing its subscriber base.
While Apple does not view streaming as a core aspect of its business, it appears to be shifting away from unlimited spending, a trend supported by its reluctance to renew shows for third seasons. Apple TV+ is also unique among major streaming services as it currently lacks an advertising tier, although this may change following the recent hiring of Joseph Cady, a former NBCUniversal ad executive.