Apple is reportedly aware that it has been overspending on its Apple TV+ original content, with estimates reaching around $20 billion. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to consider budget cuts and alter the service’s current spending habits.
The streaming platform has made substantial investments, including a staggering $250 million for the miniseries “Masters of Air,” which premiered this year but failed to gain significant interest. Additionally, Apple has invested over $500 million in films from notable directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these high expenditures, Apple TV+ accounts for just 0.2% of TV viewership in the United States, with monthly viewing figures trailing behind Netflix’s daily totals. The service has also faced challenges in attracting new subscribers.
Although Apple’s streaming service is not a primary focus of its business operations, the company appears to be moving towards more cautious spending practices, as indicated by its hesitance to renew shows for a third season. Furthermore, Apple TV+ is currently the only major streaming service without an advertising tier, a situation that may change following the appointment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.