Apple is reevaluating its spending on original content for Apple TV+, having invested around $20 billion in productions, many of which have gone unnoticed by viewers. Reports indicate that Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about cutting budgets, as the company aims to move away from its image as the biggest spender in the industry.
The tech giant has notably invested significant amounts, such as $250 million for the miniseries “Masters of Air,” which saw limited impact upon release. Additionally, over $500 million has been spent on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its heavy financial commitments, Apple TV+ holds just 0.2% of the US television viewership market, lagging far behind competitors like Netflix, which garners more views in one day than Apple TV+ does in an entire month. Although subscriber growth has been a challenge, Apple does not seem overly concerned since streaming is not central to its business model.
However, the era of unrestricted spending may be coming to an end, as indicated by the company’s hesitation to renew shows for third seasons. Notably, Apple TV+ is the last significant streaming platform without an advertisement-supported tier, a situation that may soon change following the recent hiring of ad executive Joseph Cady from NBCUniversal.