Apple is reassessing its spending on original content for Apple TV+, having reportedly invested around $20 billion. According to Bloomberg, the company’s executive, Eddy Cue, has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets.
Apple TV+ has gained a reputation for being a significant spender in the industry, having invested substantial amounts in productions such as the miniseries “Masters of Air,” which cost $250 million and garnered minimal viewer engagement. The platform has also spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ holds a mere 0.2% share of TV viewership in the U.S., with monthly views falling short compared to Netflix’s performance in just one day. The service has also faced challenges in boosting subscriber numbers.
Streaming is not a central focus for Apple, which may explain the company’s lack of urgency regarding Apple TV+’s viewership issues. However, it appears that unlimited spending may soon come to an end. This is evidenced by a more cautious approach to renewing shows for third seasons.
Furthermore, Apple TV+ remains the only major streaming platform without an advertising tier, a situation that is expected to change following the hiring of Joseph Cady, an ad executive from NBCUniversal, earlier this year.