Apple is reportedly aware that it has been overspending on original content for its streaming service, Apple TV+. According to Bloomberg, the company has invested around $20 billion in TV shows and movies, many of which remain largely unseen by the public.
Apple executive Eddy Cue has been engaging with studio heads Zack Van Amburg and Jamie Erlicht to discuss budget cuts. The studio chiefs have indicated that the streaming service is looking to move away from its reputation as the largest spender in the industry.
Among its high-profile expenditures, Apple shelled out $250 million for the miniseries “Masters of Air,” released this year, which did not garner significant viewer engagement. The service has also spent over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the massive financial outlay, Apple TV+ holds a mere 0.2% share of TV viewership in the United States, attracting fewer viewers in a month than Netflix does in just one day. Furthermore, the platform has faced challenges in expanding its subscriber base.
While Apple does not seem particularly concerned about these issues, as streaming is not a primary focus of its business, the era of unchecked spending appears to be coming to an end. This shift is reflected in the company’s hesitance to renew shows for additional seasons, as reported by Bloomberg.
Additionally, Apple TV+ is the last significant streaming service without an advertising tier, a situation that is expected to change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.