Apple is reevaluating its spending on original programming for its streaming service, Apple TV+, acknowledging that it is investing excessively in shows and movies that have not garnered significant viewer attention. The company has reportedly spent around $20 billion on original content, and discussions are underway among executives, including Eddy Cue and studio heads Zack Van Amburg and Jamie Erlicht, about reducing budgets.
Despite high-profile projects, such as the $250 million miniseries “Masters of Air,” which did not achieve expected viewership, and over $500 million spent on films by renowned directors like Martin Scorsese and Ridley Scott, Apple TV+ commands only 0.2% of TV viewership in the United States. This low engagement translates to fewer monthly views than what competitors like Netflix pull in just 24 hours, leading to challenges in subscriber growth.
While these difficulties have not overly concerned Apple, as streaming is not central to its business model, there are signs that the era of unchecked spending is coming to an end. This shift is illustrated by a hesitance to renew shows for additional seasons. Furthermore, Apple TV+ is currently the only major streaming platform without an ad-supported tier, a situation that may soon change following the hiring of advertising executive Joseph Cady from NBCUniversal.