Apple is reportedly reevaluating its spending on original content for its streaming service, Apple TV+, after investing an astonishing $20 billion. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to tighten budgets. The company aims to move away from its image as the largest spender in the industry.
Apple has invested heavily in productions, such as the $250 million miniseries “Masters of Air,” which faced a lukewarm reception upon its release. The company has also allocated over $500 million for films from renowned directors including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its significant expenditures, Apple TV+ holds only 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix does in just 24 hours. Additionally, Apple TV+ has encountered difficulties in growing its subscriber base.
Although the challenges facing Apple TV+ have not raised alarms within the company, given that streaming is not its primary business focus, it appears the era of unrestricted spending may be coming to an end. This shift is reflected in the company’s hesitance to renew shows for third seasons, according to Bloomberg.
Notably, Apple TV+ remains the only major streaming service without an advertising tier, a situation that may soon change now that the company has recruited advertising executive Joseph Cady from NBCUniversal earlier this year.