Apple is reportedly aware of its significant spending on TV shows and movies, many of which have gone unnoticed by audiences. The company is now reassessing its approach to Apple TV+, having invested around $20 billion in original content, according to Bloomberg.
Apple executive Eddy Cue has been engaged in discussions with studio heads Zack Van Amburg and Jamie Erlicht regarding budget cuts. The executives have indicated a desire for the platform to move away from its image as the largest spender in the industry.
The company has made substantial investments in projects such as the $250 million miniseries “Masters of Air,” which failed to garner substantial viewership upon its release this year. Furthermore, Apple has spent over $500 million on films directed by well-known filmmakers including Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this high level of expenditure, Apple TV+ holds only 0.2% of TV viewership in the United States, with its monthly numbers falling short compared to Netflix’s viewership in just 24 hours. The platform has also faced challenges in growing its subscriber base.
Although the streaming service’s issues do not appear to be a major concern for Apple, as it is not central to its business strategy, the era of limitless spending may be coming to an end. Signs of this shift include a hesitance to renew series for additional seasons, according to Bloomberg’s insights.
Notably, Apple TV+ is currently the only major streaming service without an advertising tier, a situation likely to change following the company’s hiring of ad executive Joseph Cady from NBCUniversal earlier this year.