Apple is reportedly looking to cut back on its substantial spending on original content for its streaming service, Apple TV+. According to Bloomberg, the tech giant has invested approximately $20 billion on shows and movies, but has received little recognition for many of its productions.
Meetings have been held between Apple executive Eddy Cue and the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, to discuss ways to control budgets more effectively. The studio chiefs have indicated a desire for the platform to move away from its reputation as the largest spender in the industry.
Apple’s expenditures include a notable $250 million for the miniseries “Masters of Air,” which did not gain significant viewership upon its release this year. Additionally, the company has invested over $500 million in films from acclaimed directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite such aggressive spending, Apple TV+ claims a mere 0.2% share of television viewership in the United States, lagging far behind competitors like Netflix, which surpasses Apple TV+ in views within just 24 hours. Moreover, the service has faced challenges in growing its subscriber base.
While streaming is not a central component of Apple’s business model, the company appears to be transitioning away from its previously unlimited spending spree, as indicated by its hesitance to renew certain shows for third seasons. Notably, Apple TV+ remains the only major streaming platform without an advertising tier, a situation likely to change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.