Apple is aware that its spending on TV shows and movies has been excessive, particularly for content that many viewers may not even recognize. The company is reportedly reassessing its approach to Apple TV+ after investing an astounding $20 billion in original content, according to Bloomberg.
Bloomberg revealed that Apple executive Eddy Cue has been collaborating with the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, to cut back on budgets. The studio heads are reportedly expressing a desire to shed the platform’s image as the largest spender in the industry.
Apple has made significant financial commitments, including $250 million for the miniseries “Masters of Air,” which garnered minimal attention upon its release this year. The streaming service has also invested over $500 million in films directed by prominent filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these hefty investments, Apple TV+ holds a mere 0.2% of TV viewership in the United States, with its monthly views being overshadowed by Netflix’s viewership in just one day. The platform has also faced challenges in growing its subscriber base.
Although these issues have not caused Apple much concern, given that streaming is not central to its business model, the company seems poised to end its era of unrestricted spending. This shift is reflected in its hesitance to renew shows for a third season.
Notably, Apple TV+ stands out as the only major streaming service without an advertising tier, a situation that is likely to change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.