Apple is reevaluating its spending on original content for its streaming service, Apple TV+, after reportedly investing a staggering $20 billion into TV shows and movies. Recent discussions among Apple executives, including Eddy Cue and studio heads Zack Van Amburg and Jamie Erlicht, indicate a desire to reduce budgets and shift away from being recognized as the largest spender in the industry.
Apple’s extravagant expenditures include $250 million for the miniseries “Masters of Air,” which saw minimal audience engagement upon release. Additionally, it has invested over $500 million in films directed by notable filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these high-profile investments, Apple TV+ accounts for only 0.2% of television viewership in the United States, garnering fewer views in a month than Netflix receives in just one day. The platform has also faced challenges in growing its subscriber base.
While Apple has not seemed overly concerned about the streaming service’s performance, given that streaming is not central to its business model, it appears to be signaling a move away from unlimited spending. This is reflected in its hesitance to renew series for third seasons.
Currently, Apple TV+ stands out as the only major streaming service without an ad-supported tier, a situation likely to change following the recent hiring of ad executive Joseph Cady from NBCUniversal earlier this year.