Apple is reassessing its spending on original content for Apple TV+ after reportedly investing $20 billion, much of which has gone towards shows and films that have not gained significant viewership.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets. The team is reportedly aiming to change the platform’s perception as the top spender in the industry.
The company has made major financial commitments, including $250 million for the miniseries “Masters of Air,” released this year but failing to capture audience attention. Additionally, investments exceeding $500 million have been made for films by notable directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the heavy investments, Apple TV+ holds a mere 0.2% of U.S. TV viewership, attracting fewer views in a month than Netflix garners in just 24 hours. The service has also faced challenges in growing its subscriber base.
While Apple does not prioritize streaming as a core aspect of its business, increasing scrutiny on spending is apparent, particularly in the hesitance to renew shows for third seasons, as indicated by Bloomberg’s findings.
Notably, Apple TV+ remains the only major streaming platform without an advertising tier, a situation likely to change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.