Apple is reportedly reevaluating its spending on television shows and movies as it acknowledges that it has invested significantly in content that many people are neither aware of nor have seen. The company has allocated around $20 billion for original programming, according to Bloomberg.
Eddy Cue, an Apple executive, has been in discussions with the heads of Apple TV+, Zack Van Amburg and Jamie Erlicht, to rethink their budgeting strategy. Both studio chiefs have indicated that the streaming service aims to improve its image from being perceived as the industry’s largest spender.
Among its substantial financial commitments, Apple has spent $250 million on the miniseries “Masters of Air,” which was launched this year but failed to gain significant traction. Moreover, it has invested over $500 million in films by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its extensive investments, Apple TV+ captures only 0.2% of television viewership in the United States, receiving fewer views in a month than Netflix does in just a 24-hour period. The platform has also struggled to boost its subscriber numbers.
While Apple TV+’s challenges do not seem to be a primary concern for the tech giant—given that streaming is not a central focus of its business—the era of unlimited spending appears to be coming to an end. This shift is already reflected in the company’s hesitation to renew shows for third seasons.
Additionally, Apple TV+ is currently the last major streaming service that does not offer an ad-supported tier. This situation is expected to change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.