Apple is reportedly aware that it has been overspending on original content for its streaming service Apple TV+, shelling out an astonishing $20 billion on shows and movies. This has prompted executives at the company to reassess their strategy.
According to Bloomberg, Apple executive Eddy Cue has met with studio heads Zack Van Amburg and Jamie Erlicht to discuss reducing budgets. They are said to be eager to shed Apple TV+’s reputation as the biggest spender in the industry.
Apple has invested substantial amounts in high-profile projects, such as the $250 million miniseries “Masters of Air,” which failed to make a significant impact upon its release. Additionally, reports indicate that the company has spent over $500 million on films from notable directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial investments, Apple TV+ holds just 0.2% of total TV viewership in the United States, achieving fewer views in a month than what Netflix can garner in just 24 hours. The service has also faced challenges in attracting new subscribers.
While Apple has not expressed considerable concern over the struggles of its streaming service—given that streaming is not a core part of its business—the era of unrestricted spending appears to be coming to a close. This shift is reflected in its hesitance to renew shows for third seasons, as noted by Bloomberg data.
Interestingly, Apple TV+ is currently the only major streaming service lacking an advertising tier, although this may soon change following the appointment of Joseph Cady, a former NBCUniversal ad executive, earlier this year.