Apple is reportedly aware that it has been overspending on original TV shows and movies, many of which remain largely unseen by audiences. According to Bloomberg, the tech giant has invested around $20 billion in content for its streaming service, Apple TV+, but is now looking to adopt a more prudent financial strategy.
Executive Eddy Cue has been engaged in discussions with studio heads Zack Van Amburg and Jamie Erlicht to reduce budgets and alter the platform’s spending habits. The leadership has indicated a desire to move away from the image of being the largest spender in the industry.
Notably, Apple also made significant investments in high-profile productions, including $250 million for the miniseries “Masters of Air,” released this year with disappointing viewership. In total, more than $500 million has gone toward films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite Apple TV+’s extensive financial outlay, it holds a mere 0.2% share of TV viewership in the United States, garnering less traffic in a month than Netflix achieves in just one day. The platform has faced challenges in growing its subscriber base.
While Apple’s streaming service has posed challenges, it remains a secondary focus for the company overall. However, indications suggest that the era of unrestrained spending may be approaching an end, as evidenced by the company’s hesitancy to renew shows for additional seasons.
Interestingly, Apple TV+ is the last major streaming service without an advertising tier, a situation expected to change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.