Apple is reportedly reevaluating its spending on original content for Apple TV+, having invested a staggering $20 billion in TV shows and movies. According to Bloomberg, Apple executive Eddy Cue has engaged in discussions with studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets. The studio heads have indicated the desire for the streaming service to move away from its image as the industry’s highest spender.
The company has made significant financial commitments to projects, such as the $250 million spent on the miniseries “Masters of Air,” which failed to gain traction upon its release this year. Additionally, Apple has invested over $500 million in films from acclaimed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these massive expenditures, Apple TV+ accounts for only 0.2% of television viewership in the United States, receiving fewer views in a single month than Netflix garners in just one day. The platform has also faced challenges in subscriber growth.
While Apple has not shown signs of stress over the performance of its streaming service, as it is not central to its overall business model, the period of unchecked spending appears to be coming to an end, hinted at by the company’s hesitance to continue renewing shows for third seasons. Furthermore, Apple TV+ is currently the only major streaming service without an advertising tier, a situation that may change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.