Apple is recognizing its excessive spending on original TV shows and movies that many viewers may not be familiar with. Reports indicate that the tech giant has invested a staggering $20 billion into its Apple TV+ content.
As part of a new strategy, Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht to reduce production costs. The duo has reportedly stated that the streaming service aims to change its image as the highest spender in the industry.
Apple’s financial commitment is evident in its spending on projects like the $250 million miniseries “Masters of Air,” which premiered this year but failed to make a significant impact. The company has also invested over $500 million on films by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite pouring considerable resources into original content, Apple TV+ holds a mere 0.2% share of TV viewership in the United States, with its monthly audience dwarfed by Netflix’s viewership in just 24 hours. The service has also faced challenges in growing its subscriber base.
While Apple does not consider streaming a central element of its business, signs indicate a shift away from its previously limitless spending, including a hesitance to renew shows for third seasons. Additionally, Apple TV+ remains the last major streaming platform without an advertising tier, but this may soon change following the hire of ad executive Joseph Cady from NBCUniversal earlier this year.