Apple is reevaluating its spending on original content for Apple TV+, having reportedly invested a staggering $20 billion in shows and movies that many viewers may not be familiar with. According to Bloomberg, Apple executive Eddy Cue has been in discussions with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, to reduce production budgets. There are indications that the streaming service aims to move away from its image as the highest spender in the industry.
Notably, Apple has spent considerable sums on productions such as the $250 million miniseries “Masters of Air,” which garnered minimal traction following its release this year. The service has also invested over $500 million in films from notable directors including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive investment, Apple TV+ commands just 0.2% of television viewership in the United States, receiving fewer views in a month than Netflix attracts in just 24 hours. The platform has struggled to attract new subscribers as well.
However, the streaming service’s challenges don’t seem to be a major concern for Apple, since streaming is not a central part of its business model. Nevertheless, the company is signaling a shift away from its previously unlimited spending habits, a trend reflected in its hesitation to renew shows for third seasons, as reported by Bloomberg.
Additionally, Apple TV+ remains the only major streaming platform without an advertising tier, a situation that may soon change, especially after the recent hiring of Joseph Cady, a former NBCUniversal advertising executive.