Apple is cutting TV+ spending! Giant projects could not attract viewers

Despite investing more than $20 billion in original programming since its launch in 2019, Apple TV+ has struggled to expand its audience. Despite big expenses and high-profile projects, Apple TV+ can retain only 0.2% of TV viewers in America, according to Bloomberg’s report. This led to the company’s decision to cut back on Hollywood spending.

Apple TV+ cuts spending

Since its launch, Apple TV+ has attracted attention by making deals with big names such as Oprah Winfrey, Steven Spielberg and Jennifer Aniston. However, these large investments failed to attract the desired audience. Zack Van Amburg and Jamie Erlicht, who manage Apple’s Hollywood operation, aimed to create a platform that offers unlimited financial resources to its creators. Despite this, Apple TV+ cannot even reach Netflix’s daily viewing rate in monthly viewing rates.

Apple’s new strategy includes tighter budget controls and a more careful approach to spending. The company plans to pay less upfront for projects, cancel underperforming series more quickly and delay productions to better manage costs. For example, production on the sci-fi series Foundation was postponed to avoid budget overruns caused by delays due to the 2023 actors and writers strike.

Due to pandemic-related delays, infighting, and additional costs, the cost of Severance’s second season exceeded $20 million per episode. The company asked Severance producers to reduce the budget for future seasons. Additionally, Apple has become more selective about acquiring new projects and has begun rejecting projects it would have accepted a few years ago. The company wants to shed its image as Hollywood’s biggest spender and bring more discipline and strategy to its content investments.