Apple is acknowledging its excessive spending on original TV shows and movies, many of which have gone largely unnoticed by audiences. The company has invested a staggering $20 billion into Apple TV+, leading to discussions among executives about the need to reassess budget allocations.
Reports indicate that Eddy Cue, an Apple executive, has been engaging with studio heads Zack Van Amburg and Jamie Erlicht to strategize potential budget cuts. The duo is reportedly aiming to change the platform’s image as a major spender in the industry.
Significant financial commitments from Apple include $250 million for the miniseries “Masters of Air,” which failed to attract substantial viewership upon its release this year. Additionally, Apple has invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ holds a mere 0.2% of TV viewership in the United States, garnering fewer views in a month than Netflix achieves in just one day. The streaming service has also faced challenges in boosting its subscriber base.
While Apple has not indicated major concern over the performance of its streaming service—largely because it is not a primary focus of the company’s business—the current trend of unchecked spending appears to be nearing its end. This shift is underscored by its hesitation to renew shows for third seasons.
Currently, Apple TV+ is the only major streaming platform without an advertising tier, although this may change following the recent hiring of Joseph Cady, a former NBCUniversal ad executive.