Apple is re-evaluating its television and movie spending following reports of a staggering $20 billion outlay on original content, many of which have gone largely unnoticed by viewers.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht to reduce their budgets. The studio chiefs are reportedly working towards changing the platform’s image as the biggest spender in the industry.
The company has made significant investments in productions, including $250 million for the miniseries “Masters of Air,” which received minimal attention upon its release. Additionally, Apple has spent over $500 million on films by notable directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these lavish expenditures, Apple TV+ accounts for only 0.2% of television viewership in the United States, lagging behind Netflix, which garners more views in just one day than Apple TV+ does in an entire month. The platform has also faced challenges in boosting its subscriber base.
While Apple does not prioritize streaming as a core business, the company appears to be shifting away from unlimited spending, as evidenced by its reluctance to renew shows for third seasons. Furthermore, Apple TV+ remains the only major streaming service without an ad-supported tier, a situation that may be changing following the hiring of advertising executive Joseph Cady from NBCUniversal earlier this year.