Apple is reevaluating its spending on original content for Apple TV+, having invested around $20 billion in productions that often go unnoticed by audiences. Reports indicate that Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets and improving the service’s reputation for being the highest spender in the industry.
The tech giant has made substantial financial commitments, including $250 million for the miniseries “Masters of Air,” which underperformed upon release. Additionally, over $500 million has been allocated to productions from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the heavy investment in original programming, Apple TV+ currently holds just 0.2% of the television viewership share in the United States, with its monthly views falling short compared to Netflix’s single-day numbers. The platform has also faced challenges in growing its subscriber base.
While Apple does not prioritize streaming as a core part of its business model, the company’s excessive spending appears to be tapering off, as indicated by its hesitance to renew shows for third seasons. Notably, Apple TV+ remains the final major streaming service without an ad-supported tier, a situation likely to change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.