Apple is reportedly aware that it is investing excessively in original content for Apple TV+, with expenditures around $20 billion, many of which are on shows and movies that have not gained significant attention. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht regarding budget reductions for the streaming service. They are reportedly looking to change the perception of Apple TV+ as the industry’s biggest spender.
The company has invested heavily in productions like the miniseries “Masters of Air,” which cost $250 million and received a lukewarm response upon its release this year. Additionally, Apple has spent over $500 million on films from acclaimed directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these large investments, Apple TV+ holds just 0.2% of TV viewership in the United States, attracting significantly fewer viewers in a month than Netflix receives within a single day. The service has been struggling to grow its subscriber base.
Although the tech giant does not appear overly concerned about these challenges, as streaming is not a primary focus of its business, signs indicate that the era of unlimited spending may be coming to an end. The company has already shown hesitation to renew shows for their third seasons.
Importantly, Apple TV+ remains the only major streaming platform without an advertising tier, a situation expected to change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.