Apple is reassessing its massive spending on original content for Apple TV+, which has reached $20 billion, as the company acknowledges that many shows and movies have gone largely unseen.
According to reports, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to tighten budgets. They are working to improve the platform’s image as the industry’s largest spender on content.
The tech giant has invested significant sums in productions, spending $250 million on the miniseries “Masters of Air,” which did not garner much attention after its release this year. Additionally, Apple has invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this considerable financial commitment, Apple TV+ holds a mere 0.2% of TV viewership in the United States and garners fewer views in an entire month than Netflix receives in just one day. The platform has also faced challenges in attracting new subscribers.
While Apple’s streaming challenges do not pose an immediate threat to the company’s overall business, it appears that the era of unlimited spending on Apple TV+ is coming to an end. This shift is reflected in its hesitation to renew shows for a third season.
Notably, Apple TV+ remains the only major streaming service without an ad-supported tier, but changes may be on the horizon following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.