Apple is reassessing its spending on original content for Apple TV+, acknowledging that it has invested excessively in shows and movies that have not gained significant popularity. According to Bloomberg, the company has poured approximately $20 billion into original programming, yet its viewership remains minimal, capturing only 0.2% of the U.S. TV audience. In comparison, Netflix garners more views within a single day than Apple TV+ does in an entire month.
Apple executive Eddy Cue has reportedly been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to strategically reduce production budgets, aiming to change the perception of Apple TV+ as the biggest spender in the industry. This comes after costly projects, including the $250 million miniseries “Masters of Air,” which launched this year but failed to generate significant engagement. Moreover, the platform has spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the challenges faced by Apple TV+, the streaming service does not detract from Apple’s main business focus, which has allowed the company to remain relatively unconcerned about its performance. However, the trend of unrestrained spending appears to be waning, as evidenced by a hesitance to renew shows for third seasons.
Notably, Apple TV+ is the last significant streaming service that has not introduced an advertising tier, a situation likely to change following the recent hiring of Joseph Cady, a former NBCUniversal advertising executive.