Apple is reportedly aware that it is overspending on television shows and movies, many of which are not widely known or viewed. The company has invested an astonishing $20 billion in original content for its streaming service, Apple TV+, which has prompted discussions among its leadership about adopting a more measured financial approach.
Bloomberg has indicated that Apple executive Eddy Cue has been in talks with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, about managing costs more effectively. There is a clear intention to move away from the perception that Apple is the biggest spender in the industry.
Historically, Apple has invested heavily in projects, including $250 million for the miniseries “Masters of Air,” which did not achieve significant success upon its release. Additionally, the company has allocated over $500 million for films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ holds a mere 0.2% of the television viewership in the United States, garnering fewer views in an entire month than Netflix attracts in just one day. The service has also faced challenges in boosting its subscriber numbers.
Apple’s streaming service does not appear to be a significant concern for the company, as streaming is not a primary focus of its business strategy. However, signs indicate that the era of unrestricted spending may soon come to an end, especially as the company has shown reluctance to renew certain shows for third seasons.
Notably, Apple TV+ is currently the only major streaming service without an ad-supported tier, a situation that may soon change following the hiring of Joseph Cady, a former advertising executive from NBCUniversal, earlier this year.