Apple has acknowledged that it is overspending on original content for its streaming service, Apple TV+, which amounts to approximately $20 billion. Reports indicate that Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about scaling back budgets. The two executives have communicated a goal to reshape the service’s image from being viewed as the largest spender in the industry.
Apple has invested significant amounts in productions, including $250 million for the miniseries “Masters of Air,” released this year to minimal success. Additionally, over $500 million has been allocated for films created by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the extensive financial outlay, Apple TV+ holds a meager 0.2% share of TV viewership in the United States, attracting fewer viewers in a month than Netflix garners in just one day. The service has also struggled to grow its subscriber base.
Although Apple’s streaming endeavors have not deeply impacted its core business, signs indicate a shift away from its previously lavish spending habits, as evidenced by its hesitance to renew shows for third seasons. Apple TV+ remains unique among major streaming platforms as the only one without an advertising tier, a situation that may soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.