Apple is reassessing its spending on original TV shows and movies, acknowledging that it has invested significantly in content that may not have resonated with viewers. The company has reportedly allocated around $20 billion to produce original content for Apple TV+, leading to discussions among executives about budget constraints.
Eddy Cue, an Apple executive, has been in talks with studio heads Zack Van Amburg and Jamie Erlicht about curbing expenses. They have been vocal about the need to change Apple TV+’s perception as the largest spender in the industry.
Despite hefty investments like $250 million for the miniseries “Masters of Air” and over $500 million for films from renowned directors such as Martin Scorsese and Ridley Scott, Apple TV+ has struggled to attract viewership. Currently, it holds only 0.2% of TV viewership in the US, with Netflix often surpassing its monthly views in just a single day. The platform has also faced challenges in growing its subscriber base.
Although Apple appears unconcerned about its streaming service’s performance, as it does not constitute a core part of its business, signs indicate a shift towards more cautious spending. The company has already shown hesitance in renewing shows for third seasons.
Furthermore, Apple TV+ stands out as the only major streaming service without an advertisement tier, a situation that may soon change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.