Apple is aware that it has been overspending on original TV shows and movies that many viewers may not even recognize. According to reports, the tech giant has invested approximately $20 billion in content for its streaming service, Apple TV+, prompting discussions among executives about tightening budgets and changing the platform’s spending habits.
Eddy Cue, an Apple executive, has been engaging with the service’s leaders, Zack Van Amburg and Jamie Erlicht, to reconsider their approach to content investment. The management has communicated a desire to move away from being perceived as the largest spender in the industry.
Apple’s significant expenditures include $250 million for the miniseries “Masters of Air,” which had minimal impact upon its release, and over $500 million on films by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn. Despite its lavish spending, Apple TV+ commands just 0.2% of television viewership in the United States, achieving fewer views in a month than Netflix accumulates in a single day. The platform has also faced challenges in growing its subscriber base.
While Apple does not consider streaming a central part of its business model, its trend of unlimited spending appears to be waning, as evidenced by its hesitation to renew series for third seasons. Additionally, Apple TV+ remains unique among major streaming platforms for lacking an ad-supported tier, a situation that may change with the hiring of Joseph Cady, a former NBCUniversal advertising executive, earlier this year.