Apple is reportedly acknowledging that it has been overspending on original programming for its streaming service, Apple TV+. The company is said to be re-evaluating its approach after investing an astonishing $20 billion in content, which has not garnered the expected audience engagement.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht regarding budget constraints. The studio chiefs have communicated a desire to move away from the perception that Apple is the biggest spender in the industry.
Some of Apple’s significant expenditures include $250 million on the miniseries “Masters of Air,” released this year with disappointing results, and over $500 million on films by renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn. Despite these investments, Apple TV+ captures only 0.2% of US television viewership, significantly lagging behind competitors like Netflix, which averages more views in a single day than Apple does in a month.
While Apple TV+’s struggles have not caused major concern for the larger tech company, given that streaming is not a primary focus of its business, it appears that the era of unrestricted spending is shifting. Bloomberg reports that Apple has become less inclined to renew shows for their third seasons, reflecting a tightening of budgets.
Notably, Apple TV+ remains the last major streaming platform without an advertising tier; however, this is expected to change following the recent hiring of advertising executive Joseph Cady from NBCUniversal.