Apple is reassessing its spending strategy for TV shows and movies after investing an estimated $20 billion in original content, according to a report by Bloomberg. The company is reportedly aiming to reduce budgets, with Apple executive Eddy Cue meeting with studio heads Zack Van Amburg and Jamie Erlicht to discuss the future direction of Apple TV+.
Apple has been criticized for its high-profile spending on productions, such as the $250 million spent on the miniseries “Masters of Air,” which underperformed upon release. The company has also invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this significant financial commitment, Apple TV+ has managed to capture just 0.2% of the TV viewership in the United States, with its monthly views falling short of Netflix’s viewership in just one day. The platform has faced challenges in growing its subscriber base.
While Apple does not prioritize streaming as a core aspect of its business model, it appears to be shifting away from its previously unlimited spending habits, as evidenced by its hesitation to renew shows for a third season. Additionally, Apple TV+ remains the only major streaming service without an advertising tier, a situation that may soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal.