Apple recognizes that it is overspending on original content for its streaming service, Apple TV+, with reported expenditures exceeding $20 billion. According to a Bloomberg report, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to reconsider their current budgeting strategies. The aim is to change the platform’s image as the industry’s biggest spender.
Apple has made substantial financial commitments for various projects, such as the $250 million miniseries “Masters of Air,” which launched this year but failed to gain traction. Additionally, over $500 million has been invested in films from well-known directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the significant investment, Apple TV+ holds only 0.2% of the TV viewership in the US, accumulating fewer views in a month than Netflix garners in just 24 hours. The platform has also faced challenges in boosting subscriber numbers.
Though Apple TV+ struggles have not raised alarms within the company, as streaming is not a primary focus of its business, it appears that the era of unchecked spending is coming to an end. Indications such as a reluctance to renew shows for additional seasons suggest a shift in strategy. Furthermore, Apple TV+ remains the only major streaming service without an advertising tier, a situation that may soon change since the company recently hired Joseph Cady, an advertising executive from NBCUniversal.