Apple is reportedly aware of its excessive spending on television shows and movies that many consumers may not even recognize. According to Bloomberg, the tech giant has committed around $20 billion to original content for its streaming service, Apple TV+.
Apple executives, including Eddy Cue, have met with the heads of the service’s studio divisions, Zack Van Amburg and Jamie Erlicht, to discuss scaling back budgets. The aim is to move away from the perception that Apple TV+ is the highest spender in the industry.
The company has invested significantly in productions, including $250 million for the miniseries “Masters of Air,” which premiered this year but did not gain much attention. Additionally, Apple has spent over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive investment, Apple TV+ holds a mere 0.2% share of television viewership in the United States, receiving less engagement in a month than what Netflix attracts in just 24 hours. The service has also faced challenges in growing its subscriber base.
Although Apple has not shown immediate concern over these issues, as streaming is not central to its business model, indications suggest that the era of unlimited spending is coming to an end. This shift has already been hinted at with the company showing hesitance in renewing shows for third seasons.
Notably, Apple TV+ is currently the only major streaming service that does not offer an ad-supported tier, a situation likely to change following the hiring of advertising executive Joseph Cady from NBCUniversal earlier this year.