Apple is aware that its spending on original TV shows and movies has been excessive, particularly on projects that may not be widely recognized by audiences.
According to Bloomberg, the tech giant has invested about $20 billion in original content for Apple TV+ and is now re-evaluating this strategy. Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to tighten budgets and reshape the streamer’s reputation as the industry’s biggest spender.
Significant financial commitments include $250 million for the miniseries “Masters of Air,” which debuted this year but failed to generate substantial interest. Additionally, Apple has spent over $500 million on films directed by notable filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these large expenditures, Apple TV+ holds only 0.2% of the U.S. TV viewership market, receiving fewer monthly views than Netflix does in a single day. The service has also faced challenges in growing its subscriber base.
While Apple generally does not prioritize its streaming service within its broader business model, it appears to be moving away from its unrestricted spending approach. This shift is reflected in a reluctance to renew certain shows for third seasons.
Notably, Apple TV+ remains the only significant streaming platform without an ad-supported tier, a situation that may soon change following the hiring of Joseph Cady, an advertising executive formerly with NBCUniversal.