Apple is recognizing that it has been overspending on original TV shows and movies that have gone largely unnoticed by audiences. Reports indicate that the tech giant has invested a staggering $20 billion into content for its Apple TV+ service, prompting discussions among executives about the need to cut costs.
Eddy Cue, an Apple executive, has been in talks with studio heads Zack Van Amburg and Jamie Erlicht regarding budget management as the streamer seeks to alter its image as the industry’s highest spender. This comes after significant financial commitments, such as the $250 million spent on the underperforming miniseries “Masters of Air” and over $500 million invested in films from prominent directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its substantial investments, Apple TV+ holds a mere 0.2% share of television viewership in the U.S., with its monthly viewership falling short of what Netflix achieves in just one day. Moreover, the service has faced challenges in growing its subscriber base.
Though the streaming struggles might not be a major concern for Apple, given that streaming isn’t central to its business, the era of unrestricted spending appears to be coming to an end. Evidence of this shift can be seen in the company’s hesitation to renew shows for third seasons.
Interestingly, Apple TV+ is the last major streaming platform without an ad-supported tier, a situation that might soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.