Apple is re-evaluating its spending on television shows and movies, acknowledging that it may be investing excessively in content that lacks widespread recognition. The tech giant has reportedly spent around $20 billion on original programming for its Apple TV+ service.
According to reports, Apple executive Eddy Cue has been collaborating with studio heads Zack Van Amburg and Jamie Erlicht to scale back budgets. The duo is said to have expressed a desire for the streaming platform to change its image as the largest spender in the industry.
Apple’s notable financial outlays include a staggering $250 million on the miniseries “Masters of Air,” which was launched this year but failed to generate significant viewership. Additionally, the company has invested over $500 million into films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its hefty investments, Apple TV+ accounts for a mere 0.2% of television viewership in the United States, attracting significantly fewer viewers in a month than competitor Netflix does in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While Apple does not seem overly concerned about these issues since streaming is not central to its business model, it appears to be winding down its era of unlimited spending. This shift is already evident from its hesitance to renew certain shows for a third season.
Notably, Apple TV+ is the last major streaming service without an advertising tier, though that may soon change, following the recent hiring of Joseph Cady, a former advertising executive at NBCUniversal.