Apple is reassessing its spending on original TV shows and movies, acknowledging that it has invested heavily in content that many viewers have either never seen or heard of. The company has reportedly spent around $20 billion on original programming for its streaming service, Apple TV+, and executives are looking to cut back on future production budgets.
According to Bloomberg’s report, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about scaling back expenses. These executives are communicating that the platform aims to improve its reputation as a major spender in the industry.
Apple’s investments include significant sums like $250 million for the miniseries “Masters of Air,” which received minimal viewer engagement upon its release. Additionally, the company has invested over $500 million in films from prominent directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its substantial financial commitments, Apple TV+ holds a mere 0.2% share of TV viewership in the United States, garnering fewer views in an entire month than Netflix achieves in just 24 hours. The service has also faced challenges in growing its subscriber base.
However, Apple does not appear overly concerned about these issues, as streaming is not a primary focus of its business. Nevertheless, indications are that the era of limitless spending is coming to an end, as evidenced by the company’s hesitation to renew series for third seasons.
Moreover, Apple TV+ remains the only major streaming platform without an advertising tier, a situation that may soon change following the hiring of Joseph Cady, an advertising executive previously with NBCUniversal.