Apple is recognizing that it may be overly generous with its spending on original TV shows and movies that have gone largely unseen by audiences. Reports indicate that the company has poured an astonishing $20 billion into content for its streaming service, Apple TV+, prompting discussions among executives about budget adjustments.
Apple executive Eddy Cue has been engaging with studio leaders Zack Van Amburg and Jamie Erlicht to strategize on reducing expenditures. There is a consensus that the service aims to shed its image as the industry’s largest spender. Significant investments have included $250 million for the miniseries “Masters of Air,” which struggled to gain traction upon its release this year. Additionally, Apple has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the massive financial outlay, Apple TV+ holds only a 0.2% share of TV viewership in the US, receiving fewer views in a month than Netflix captures in just one day. The service has also faced challenges in subscriber growth.
Although these issues have not raised alarm within Apple, since streaming is not a central focus of its business, the company appears to be signaling an end to its era of unrestricted spending. This change is reflected in its cautious approach to renewing shows for additional seasons. Furthermore, Apple TV+ is currently the only major streaming platform without an advertising option, a situation that is likely to evolve following the hiring of Joseph Cady, a former NBCUniversal advertising executive, earlier this year.