Apple is reportedly aware that it has been overspending on original programming for its streaming service, Apple TV+, with estimates around $20 billion allocated to content that many viewers may not recognize or have seen.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about curbing production budgets. They have expressed a desire to change the perception that Apple TV+ is the largest spender in the industry.
The company has invested heavily in high-profile projects, such as the $250 million miniseries “Masters of Air,” which debuted this year but failed to attract significant viewership. Additionally, Apple has spent over $500 million on films from prominent directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this substantial financial outlay, Apple TV+ captures only 0.2% of U.S. television viewership. In comparison, Netflix achieves more views in just one day than Apple TV+ receives in an entire month. Moreover, Apple has faced challenges in increasing its subscriber base.
Although the company’s streaming endeavors are not central to its primary business, it appears poised to reduce its financial commitments, as evidenced by a hesitance to renew shows for third seasons, per Bloomberg analysis.
Interestingly, Apple TV+ remains the only major streaming platform without an advertising option. This may soon change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal, indicating a shift in strategy for the service.