Apple is reportedly recognizing that it may be overspending on original content for its streaming service, Apple TV+. According to Bloomberg, the company has expended around $20 billion on programming, much of which remains undiscovered by viewers.
In response, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about tightening budgets and moving away from the perception that the service is the largest spender in the industry.
This year, Apple invested $250 million in the miniseries “Masters of Air,” which did not achieve expected viewership numbers. Additionally, the company has spent over $500 million on films by renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its significant financial outlay, Apple TV+ holds a mere 0.2% of television viewership in the United States, with Netflix garnering more views in a single day than Apple TV+ in an entire month. The service has also faced challenges in growing its subscriber base.
While streaming is not a primary focus for Apple, the company appears to be signaling a shift away from its previous unlimited spending on original content. This change is reflected in its reluctance to renew shows for third seasons.
Notably, Apple TV+ is the only major streaming platform that does not offer an advertising tier, a situation that may soon change following the company’s recent hire of Joseph Cady, a former ad executive from NBCUniversal.