Apple is reportedly reassessing its spending on television shows and movies as it acknowledges that its investments may not yield the expected audience engagement. The tech giant has spent an astonishing $20 billion on original content for its Apple TV+ platform, yet, according to Bloomberg, it holds only a mere 0.2% of the television viewership market in the U.S.
Apple executives, including Eddy Cue, have met with studio heads Zack Van Amburg and Jamie Erlicht to discuss budget cuts and to reduce the platform’s image as the industry’s biggest spender. Notably, Apple shelled out $250 million for the miniseries “Masters of Air,” which was released this year but failed to gain significant traction.
Additionally, the company has invested more than $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn. Despite these efforts, Apple TV+ struggles to compete, garnering fewer views in a month than Netflix receives in just 24 hours, which has hampered subscriber growth.
While Apple has not shown immediate concern over these issues—given that streaming is not its primary business—it is hinting at a potential shift away from its previously boundless spending. This change is highlighted by its cautious stance on renewing shows for a third season. Furthermore, Apple TV+ remains the last major streaming service without an advertising tier, although this could change with the recent hiring of advertising executive Joseph Cady from NBCUniversal.