Apple reportedly asking studios to curtail spending on its originals

After developing a name for itself as one of the biggest spenders on content in Hollywood, tech giant Apple is reportedly looking to shed that image.

According to a Bloomberg report based on multiple sources, Apple has been meeting with studio partners to review budgets on original productions. The company is reportedly putting pressure on studio heads to take more control over spending for content for its Apple TV+ service.

Apple has spent upwards of $2o billion on producing original series and films for its Apple TV+ offering. Many of these productions have garnered positive reviews from critics and lengthy lists of award nominations, but it’s fairly clear not that many people are watching.

Bloomberg reports that Apple TV+ accounts for just 0.2% of all TV viewing in the U.S. — and notes that more people watch Netflix in a single day than Apple TV+ sees in an entire month, though that figure doesn’t factor in the fact Netflix has a much larger content library).

For its part, Apple doesn’t release official data on viewership or streaming revenue and Wall Street has largely focused more on its device sales numbers than what it’s spending on streaming, despite the giant’s push into subscription-based services. 

Apple TV+ launched Nov. 1, 2019, just months before the COVID-19 pandemic shut down much of the U.S. as well as production on shows for networks and streamers alike.

Of course, no one knew that was coming at the time, and although the service launched with a small arsenal of shows that had completed production, it was later forced to pay big bucks to license projects originally slated for theatrical releases that were sidelined by the pandemic.

Apple’s strategy of only offering original content on TV+ does help differentiate it from other streamers, who typically offer a mix of both originals and licensed films and shows. However, this has been coupled with trying to go after big name talent, which means the company is often on the hook for millions of dollars just to pay cast members — before any production costs are factored in.

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