Apple is reassessing its spending on TV shows and movies, having invested an astonishing $20 billion in original content that many viewers may not recognize. Recent reports indicate that executive Eddy Cue has been discussing budget cuts with Apple TV+’s studio heads Zack Van Amburg and Jamie Erlicht, who are eager to change the platform’s reputation as the industry’s biggest spender.
Apple has invested significant amounts in high-profile projects, including $250 million for the miniseries “Masters of Air,” which debuted this year but failed to attract a large audience. In addition, the company has spent over $500 million on films from prominent directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the huge financial outlay, Apple TV+ holds only a 0.2% share of TV viewership in the United States, which is dwarfed by Netflix’s viewership, where the latter garners more views in a single day than Apple TV+ does in a month. The service has also struggled with subscriber growth.
While streaming is not central to Apple’s core business, the company’s days of unrestrained spending appear to be dwindling. This shift is hinted at by its hesitance to renew shows for a third season, according to data from Bloomberg.
Additionally, Apple TV+ remains the last significant streaming platform without an ad-supported tier. However, there may be changes ahead, as the company recently brought on Joseph Cady, a former ad executive from NBCUniversal, suggesting a potential shift in strategy.