Apple is reportedly recognizing that it has been overspending on original content for its streaming service, Apple TV+, investing a staggering $20 billion without achieving significant visibility in the market.
According to Bloomberg, Apple executive Eddy Cue has been holding discussions with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, about tightening budget allocations. The team is said to be aiming to improve the platform’s reputation, moving away from being identified as the largest spender in the industry.
The tech giant has made substantial investments in various projects, including $250 million on the miniseries “Masters of Air,” which launched this year but failed to gain traction. Additionally, more than $500 million has been spent on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this heavy expenditure, Apple TV+ captures only 0.2% of television viewership in the United States, receiving fewer views in a month than Netflix attracts in just 24 hours. The platform has also faced challenges in growing its subscriber base.
Apple appears relatively unconcerned about these issues, as streaming services are not central to its overall business strategy. However, the trend of unabated spending may be shifting, as suggested by the company’s hesitance to renew shows for third seasons based on recent data.
Notably, Apple TV+ remains the only major streaming service that does not offer an advertising tier. This may soon change, especially following the hiring of Joseph Cady, a former NBCUniversal ad executive, earlier this year.