Apple is reportedly aware of its excessive spending on TV shows and movies that many viewers may not recognize or remember. According to Bloomberg, the tech giant has invested around $20 billion in original content for its streaming service, Apple TV+, and is now considering a new strategy to manage costs.
Sources indicate that Apple executive Eddy Cue has been in discussions with Apple TV+’s studio heads, Zack Van Amburg and Jamie Erlicht, about controlling budget expenditures. The studio chiefs are said to be keen on moving away from the perception of Apple as the industry’s largest spender.
Apple has made significant financial commitments, including a $250 million investment in the miniseries “Masters of Air,” which had a lukewarm reception upon release. Additionally, the company has spent over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its hefty investments, Apple TV+ holds only 0.2% of TV viewership in the US, falling drastically behind competitors like Netflix, which generates more views in a single day than Apple TV+ does in a month. The service has also faced challenges in growing its subscriber base.
While Apple does not consider streaming a central part of its business strategy, the company’s shift away from unrestricted spending appears imminent. This is further indicated by its cautious approach to renewing shows for additional seasons.
Currently, Apple TV+ stands out as the last major streaming platform without an advertising tier, but this is likely poised to change with the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.