Apple has acknowledged its excessive spending on original TV shows and movies that many viewers have likely not seen or heard of. The company is reportedly taking a new direction with Apple TV+ after investing approximately $20 billion in original content, according to Bloomberg.
Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht, aiming to reduce budgets. The leadership is reportedly eager to change the platform’s image as the largest spender in the industry. Apple has made significant financial commitments, including $250 million for the miniseries “Masters of Air,” which launched this year with minimal impact.
Additionally, Apple has invested over $500 million in films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn. Despite this hefty expenditure, Apple TV+ holds only a 0.2% share of television viewership in the United States, attracting fewer views in a month than Netflix garners in just one day. The service has also faced challenges in growing its subscriber base.
Although Apple TV+ is currently experiencing difficulties, the streaming service is not central to the tech giant’s business and has not caused significant concern within the company. However, it appears that the era of limitless spending may be approaching its end, as evidenced by the company’s hesitance to renew shows for third seasons, as reported by Bloomberg.
Apple TV+ remains the last major streaming service without an ad-supported tier, a situation that may soon change following the company’s recent hiring of Joseph Cady, an advertising executive from NBCUniversal.