Apple is acknowledging that it is overspending on original content for its streaming service, Apple TV+. The company has reportedly invested around $20 billion in developing shows and movies, many of which have not gained significant audience recognition.
According to Bloomberg, Apple executive Eddy Cue has been discussing budget reductions with the heads of Apple TV+, Zack Van Amburg and Jamie Erlicht. The leadership is aiming to change the platform’s image as the biggest spender in the industry.
Apple’s expenditures include high-profile projects such as the $250 million miniseries “Masters of Air,” which performed poorly upon release. The company has also invested over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this large investment, Apple TV+ claims just 0.2% of television viewership in the United States, receiving far fewer views in a month than Netflix draws in a single day. The service has also faced challenges in growing its subscriber base.
While streaming is not a primary focus for Apple, the company appears to be reassessing its aggressive spending strategy, as indicated by its willingness to scale back on renewing shows for third seasons. Furthermore, Apple TV+ remains the last major streaming platform without an advertising tier, a situation that may change following the recent hiring of ad executive Joseph Cady from NBCUniversal.