Apple is reevaluating its spending on original content for Apple TV+, having reportedly invested around $20 billion. According to Bloomberg, Apple executive Eddy Cue is meeting with the streaming service’s leaders, Zack Van Amburg and Jamie Erlicht, to discuss budget limitations. The aim is to change the perception of the platform as the top spender in the industry.
The tech giant has made significant financial commitments for various productions, including $250 million for the miniseries “Masters of Air,” which has not performed well in terms of viewership. Additionally, over $500 million has been allocated for films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ captures only 0.2% of television viewership in the U.S. and receives far fewer views in a month than Netflix garners in just 24 hours. The service has also faced challenges in attracting new subscribers.
While these issues haven’t raised major concerns for Apple, as streaming isn’t a core part of its business model, the era of unrestricted spending is likely coming to an end. This shift is evident as the company has been hesitant to renew shows for third seasons.
Furthermore, Apple TV+ is currently the only significant streaming service without an ad-supported subscription tier. This may soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.