Apple recognizes that its spending on television shows and movies has reached unsustainable levels, investing around $20 billion in original content, much of which remains largely unknown to audiences.
According to reports, Apple executive Eddy Cue has been in discussions with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, about the necessity of reducing expenditures. The studio leaders are reportedly expressing a desire for the streaming service to move away from its image as the industry’s largest spender.
Apple’s substantial investments include $250 million for the miniseries “Masters of Air,” which failed to gain significant attention upon its release this year. Additionally, the company has allocated over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the heavy financial outlay, Apple TV+ holds a mere 0.2% share of television viewership in the United States, with its monthly audience numbers falling short compared to Netflix’s viewership in just one day. The service has also faced challenges in growing its subscriber base.
While Apple TV+’s struggles do not appear to pose significant concerns for the tech giant—given that streaming services are not central to its business model—the era of its unrestricted spending may be coming to an end. This is evidenced by the company’s recent hesitance to renew shows for third seasons.
Furthermore, Apple TV+ stands out as the only major streaming platform that has not introduced an advertising tier, although this is expected to change following the company’s recruitment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.