Apple is acknowledging its excessive spending on original television shows and movies that many audiences may not be familiar with. According to a report from Bloomberg, the tech giant has invested a staggering $20 billion into Apple TV+, and now executives are seeking a new strategy to manage these costs.
Eddy Cue, an executive at Apple, is reportedly in discussions with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, about tightening budgets. The pair has expressed a desire to move away from the platform’s image as the largest spender in the industry.
Apple has spent significant amounts on productions, including $250 million for the miniseries “Masters of Air,” which failed to generate significant viewer interest. Additionally, over $500 million has been allocated to films by renowned directors such as Martin Scorsese and Ridley Scott.
Despite these investments, Apple TV+ commands just 0.2% of television viewership in the United States, with its monthly viewership falling short of the numbers Netflix achieves in just a single day. The platform has also faced challenges in boosting its subscriber base.
While Apple does not appear overly concerned with the streaming service’s struggles—as it is not a core part of its business model—the company seems to be shifting away from unlimited spending. This change is reflected in its hesitance to renew certain shows for third seasons, according to Bloomberg.
Notably, Apple TV+ remains the only major streaming service without an advertising tier, but that may soon change following the hiring of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.