Apple is reportedly aware that it has been overspending on original content for its streaming service, Apple TV+. The company has invested around $20 billion on shows and movies that many viewers may not be familiar with, according to a report from Bloomberg.
Apple executive Eddy Cue has been in discussions with the heads of Apple TV+, Zack Van Amburg and Jamie Erlicht, about reducing the service’s budgets. There is an effort within the company to shift away from being perceived as the biggest spender in the industry.
Significant investments include $250 million for the miniseries “Masters of Air,” released this year to lackluster reception. Additionally, Apple has allocated over $500 million for films by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these heavy expenditures, Apple TV+ holds a mere 0.2% share of television viewership in the US, with its monthly views failing to compare with Netflix’s viewership in just one day. The service has also faced challenges in attracting new subscribers.
While Apple has shown little concern for the performance of its streaming service—given that streaming is not central to its business model—the trend of unchecked spending appears to be coming to an end. This has been indicated by a cautious approach to renewing shows for additional seasons.
Notably, Apple TV+ remains the last significant streaming platform without an advertisement tier. However, this may soon change following the hiring of advertising executive Joseph Cady from NBCUniversal earlier this year.