Apple is recognizing that it has been overspending on original TV shows and movies that many people may not be familiar with. The company has reportedly invested around $20 billion in content for its Apple TV+ platform.
According to a report from Bloomberg, Apple executive Eddy Cue has been in discussions with the leaders of Apple TV+, Zack Van Amburg and Jamie Erlicht, about reducing spending. They have expressed a desire to change the perception of the streaming service as the largest spender in the industry.
Apple has invested significant amounts in individual projects, such as the miniseries “Masters of Air,” which cost $250 million but gained little traction upon its release. Additionally, the company has allocated over $500 million for films directed by renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive investment in original content, Apple TV+ holds only 0.2% of TV viewership in the United States, attracting far fewer views in a month compared to Netflix’s daily figures. The service has also faced challenges in boosting its subscriber numbers.
While streaming isn’t a core focus for Apple, it appears that the era of unlimited spending for Apple TV+ may be coming to an end. This shift is indicated by the company’s hesitance to renew shows for a third season, as shown in Bloomberg data.
Currently, Apple TV+ remains the only major streaming service that does not offer an ad-supported tier, though this could change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.