Apple is recognizing that its significant investment in original content for Apple TV+ may be excessive, with reports indicating a staggering $20 billion spent on shows and movies that many viewers may be unaware of.
According to Bloomberg, Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about the need to curb production budgets. The studio leaders have reportedly expressed their desire for the streaming service to move away from its reputation as the industry’s highest spender.
The company has made notable financial commitments, including $250 million for the miniseries “Masters of Air,” which premiered this year but failed to gain traction among audiences. Additionally, Apple has invested over $500 million on films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive spending, Apple TV+ commands just 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix garners in just 24 hours. The platform has also faced challenges in growing its subscriber base.
Although Apple TV+’s struggles may not be alarming to the tech giant—since streaming is not a core aspect of its business—it appears the era of boundless expenditure is coming to an end. This shift is reflected in the company’s hesitance to renew shows for additional seasons, as indicated by Bloomberg data.
Currently, Apple TV+ stands out as the only major streaming service without an ad-supported tier. However, this may soon change following the recent hiring of advertising executive Joseph Cady from NBCUniversal earlier this year.