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

Apple TV+ cuts spending

Since its launch, Apple TV+ has attracted attention by signing big names like Oprah Winfrey, Steven Spielberg and Jennifer Aniston. However, these big investments failed to attract the desired audience. Zack Van Amburg and Jamie Erlicht, who run Apple’s Hollywood operation, aimed to create a platform that offered creators unlimited financial resources. Despite this, Apple TV+ can’t even match Netflix’s one-day viewership in monthly viewership.

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 shows faster, and delay productions to better manage costs. For example, production of the sci-fi series Foundation was delayed to avoid budget overruns due to delays caused by the 2023 actors and writers strike.

Due to pandemic-related delays, internal conflicts 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. In addition, Apple has become more selective in 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.