Apple is re-evaluating its spending on original content for Apple TV+, having reportedly invested around $20 billion to date. The company has recognized that it may be overspending on productions that have not achieved significant viewer engagement.
According to reports, Apple executive Eddy Cue has been in discussions with Apple TV+ executives Zack Van Amburg and Jamie Erlicht about scaling back production budgets. The team aims to change the platform’s image as a major industry spender, which has included hefty investments like $250 million for this year’s miniseries “Masters of Air,” which failed to attract a substantial audience.
Additionally, Apple TV+ has invested over $500 million in films from acclaimed directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn. Despite this large financial commitment, Apple TV+ has only captured 0.2% of television viewership in the US, garnering significantly fewer views each month compared to its competitors like Netflix.
While Apple has faced challenges in growing its subscriber base, it does not seem particularly troubled by the performance of Apple TV+, as streaming does not form the core of its business model. However, the company is likely moving away from its expansive spending habits, as indicated by its reluctance to renew series for a third season.
Apple TV+ remains the only major streaming service without an advertising tier, although this may soon change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.