Apple is recognizing that its investment in television shows and movies may be excessive, with a staggering $20 billion spent on original content thus far. Reports indicate that Apple executive Eddy Cue has been in discussions with the leaders of Apple TV+, Zack Van Amburg and Jamie Erlicht, regarding the need to control production budgets. The duo is reportedly communicating that Apple TV+ aims to shed its image as the largest spender in the streaming industry.
The tech giant has made considerable financial commitments for various projects, including $250 million for the miniseries “Masters of Air,” which debuted this year but garnered minimal audience interest. Additionally, Apple has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
In spite of these substantial expenditures, Apple TV+ holds a mere 0.2% share of television viewership in the United States, attracting fewer views in an entire month than Netflix manages in just 24 hours. The platform has also faced challenges in boosting its subscriber base.
While Apple TV+’s issues have not caused significant concern for the overall company—given that streaming is not a primary aspect of its business—the era of unrestricted spending may be approaching an end. This shift is suggested by the company’s hesitance to renew shows for third seasons, according to Bloomberg.
Currently, Apple TV+ is the last major streaming service without an advertising tier. However, this is expected to change following the recent hiring of Joseph Cady, a former advertising executive from NBCUniversal.