Apple is reportedly aware that it has been overspending on original TV shows and movies, many of which have gone under the radar for most viewers. According to Bloomberg, the company has invested a staggering $20 billion in original content for its streaming service, Apple TV+.
Apple executive Eddy Cue has been engaging with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht to discuss strategies for reducing budgets. The duo has indicated a desire for the platform to move away from its image as the largest spender in the industry.
Significant expenditures include approximately $250 million for the miniseries “Masters of Air,” which did not garner much audience interest upon release. Additionally, Apple has invested over $500 million in films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial investments, Apple TV+ commands a mere 0.2% of TV viewership in the U.S., attracting fewer views in an entire month than Netflix garners in just one day. The service has also faced challenges in growing its subscriber base.
While Apple does not prioritize streaming as a central aspect of its overall business, it appears to be reconsidering its approach to limitless spending. This shift is evidenced by its hesitation to renew shows for third seasons, per Bloomberg’s analysis.
Interestingly, Apple TV+ is the last major streaming platform without an advertising tier, a situation that may soon change following the hiring of Joseph Cady, a former ad executive at NBCUniversal, earlier this year.