Apple is recognizing that it is overspending on original TV shows and movies, many of which may not be familiar to viewers. The tech giant has reportedly invested around $20 billion into original content for its streaming service, Apple TV+, prompting discussions among executives about budget constraints.
Eddy Cue, an Apple executive, has been in talks with studio heads Zack Van Amburg and Jamie Erlicht regarding the need to control spending. Both Van Amburg and Erlicht have indicated that the platform aims to move away from its reputation as the industry’s highest spender.
Apple has invested heavily in high-profile content, including $250 million for the miniseries “Masters of Air,” which received a lukewarm response upon its release this year. Additionally, the company has spent over $500 million on films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these significant investments, Apple TV+ only accounts for 0.2% of TV viewership in the United States, falling short in audience engagement compared to competitors like Netflix, which can attract more viewers in a single day than Apple TV+ does in a month. The service is also facing challenges in growing its subscriber base.
While Apple TV+ has been of minimal concern to the overall business of the tech company, the era of unrestricted spending appears to be coming to an end. This shift is already evident in the reluctance to renew shows for third seasons, as reported by Bloomberg.
Additionally, Apple TV+ remains the last major streaming service without an advertising tier. However, this could soon change following the recent hire of Joseph Cady, a former ad executive from NBCUniversal.