Apple is reportedly aware that it has been overspending on original content for its streaming service, Apple TV+, with an expenditure of around $20 billion. In light of this, executives from Apple, including Eddy Cue, have been in discussions to tighten budgets for the platform, aiming to improve its image as an extravagant spender.
Apple has invested heavily in projects such as the miniseries “Masters of Air,” which cost $250 million but failed to generate significant viewership. Additionally, the company has spent over $500 million on films directed by renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this substantial investment, Apple TV+ holds only 0.2% of television viewership in the United States, reportedly receiving fewer views in a month than Netflix does in just 24 hours. The service has faced challenges in growing its subscriber base.
While these issues do not seem to concern Apple significantly, as streaming is not essential to its overall business model, indications suggest that the era of unlimited spending may be coming to an end. The company has been hesitant to renew shows for third seasons, aligning with a more cautious financial strategy.
Notably, Apple TV+ remains the only major streaming platform without an advertising tier, although this may change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.