Apple is reevaluating its spending strategy for TV shows and movies following significant expenditures totaling around $20 billion on original content. According to a Bloomberg report, Apple executive Eddy Cue has been in discussions with the heads of Apple TV+, Zack Van Amburg and Jamie Erlicht, about tightening budgets and changing the streaming service’s image as a major industry spender.
The company has invested heavily in high-profile projects, such as the $250 million miniseries “Masters of Air,” which launched this year but received minimal audience engagement. Additionally, Apple has reportedly spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial investments, Apple TV+ captures only 0.2% of the U.S. TV viewership, with its monthly views falling short of what Netflix achieves in just 24 hours. Furthermore, Apple has faced challenges in growing its subscriber base.
Although streaming is not a primary focus for Apple, the company appears to be signaling a shift away from its previously unlimited budget approach, particularly as it becomes less inclined to renew shows for third seasons. Notably, Apple TV+ remains the only major streaming service without an advertising tier, a situation that may change following the hiring of ad executive Joseph Cady from NBCUniversal earlier this year.