Apple is reportedly recognizing that it is overspending on TV shows and movies, many of which may not be well-known to the audience. According to Bloomberg, the company has allocated an astounding $20 billion toward original content for its streaming service, Apple TV+.
Executives, including Eddy Cue, have been discussing strategies with studio heads Zack Van Amburg and Jamie Erlicht to tighten budgets and move away from the image of being the industry’s largest spender. This comes after significant financial commitments, such as the $250 million invested in the miniseries “Masters of Air,” which was released this year but received minimal engagement.
In addition, Apple TV+ has spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn. However, despite this investment, the platform claims a mere 0.2% share of TV viewership in the United States, getting fewer views in a month than Netflix does in just 24 hours. Subscriber growth has also proved challenging for the service.
Though Apple TV+ is a lesser focus in the broader scope of the tech giant’s business, the era of unrestricted spending may be coming to an end. Indications of this shift include their hesitation to renew shows for a third season. Furthermore, Apple TV+ remains the only major streaming service without an advertising tier, a situation likely to change following the recruitment of ad executive Joseph Cady from NBCUniversal earlier this year.