Apple is reportedly aware of its excessive spending on original content for its streaming service, Apple TV+, which has reached approximately $20 billion without significant viewer engagement. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets and changing the platform’s image as a major spender in the industry.
Apple’s high-profile investments include $250 million for the miniseries “Masters of Air,” which was released this year but failed to attract a substantial audience. Additionally, the company has spent over $500 million on films from renowned directors including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this monumental financial outlay, Apple TV+ commands only 0.2% of television viewership in the United States, with its monthly views being dwarfed by Netflix’s 24-hour numbers. The service has also faced challenges in growing its subscriber base.
While Apple has generally not prioritized streaming as a core part of its business model, indications suggest it may scale back on its spending habits. This shift in strategy is reflected in the company’s hesitance to renew shows for third seasons, according to Bloomberg’s analysis.
Additionally, Apple TV+ remains the only major streaming service without an advertising option, a situation expected to change following the hiring of advertising executive Joseph Cady from NBCUniversal.