Apple is reportedly aware of its excessive spending on original content for Apple TV+, which has reached around $20 billion. According to Bloomberg, the company is now considering a different strategy focused on budget management. Apple executive Eddy Cue has been in discussions with studio chiefs Zack Van Amburg and Jamie Erlicht to adjust spending and alter the service’s perception as the largest spender in the industry.
Apple’s financial outlays include significant investments such as $250 million for the miniseries “Masters of Air,” released this year with minimal impact. Additionally, over $500 million has been allocated to films from notable directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this monumental spending, Apple TV+ holds only a 0.2% share of TV viewership in the United States, garnering fewer views in a month than Netflix achieves in just 24 hours. Subscriber growth has also proven challenging for the service.
The tech giant does not view the streaming sector as central to its business, which may explain its lack of urgency regarding Apple TV+’s challenges. However, signs indicate a shift away from unrestricted spending, as Apple has been hesitant to renew series for third seasons. Notably, Apple TV+ remains the only major streaming service without an advertising tier, a situation that may soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.