Apple is acknowledging its excessive spending on original content for its streaming service, Apple TV+, which many viewers may not be familiar with. According to a report by Bloomberg, the tech giant has invested around $20 billion in original programming but is now considering a more cautious strategy regarding future budgets.
Eddy Cue, an Apple executive, is reportedly in discussions with studio heads Zack Van Amburg and Jamie Erlicht about scaling back expenditures. The team has indicated a desire to move away from the perception that Apple is the industry’s top spender in the streaming realm.
The company has made significant financial commitments, including $250 million for the miniseries “Masters of Air,” which failed to gain substantial audiences since its release earlier 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 financial efforts, Apple TV+ has captured only 0.2% of TV viewership in the United States, garnering fewer views in a month than Netflix does within just 24 hours. The service has also been slow to attract new subscribers.
While Apple has not expressed significant concern over these streaming challenges—given that it is not a central component of its overall business—it appears that its period of unrestricted spending might be coming to an end. This shift is suggested by the company’s hesitance to renew programs for third seasons.
Notably, Apple TV+ remains the only major streaming platform without an advertising-supported tier, a situation likely to change following the recent hiring of Joseph Cady, a former advertising executive from NBCUniversal.