Apple is reportedly recognizing that it has been spending excessively on TV shows and movies that many viewers are unfamiliar with. According to Bloomberg, the tech giant has invested around $20 billion in original content for its streaming service, Apple TV+.
Apple executive Eddy Cue has been in discussions with studio leaders Zack Van Amburg and Jamie Erlicht to reevaluate and potentially reduce production budgets. The current leadership of Apple TV+ seems eager to change its image as the highest spender in the industry.
The company has made substantial financial commitments for various productions, including a striking $250 million for the miniseries “Masters of Air,” which underperformed upon release earlier this year. Additionally, more than $500 million has been allocated to films directed by renowned filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these significant expenditures, Apple TV+ holds a mere 0.2% share of television viewership in the United States, garnering less attention in a month than Netflix receives in just one day. Subscriber growth has also posed challenges for the service.
While Apple does not prioritize streaming as a central aspect of its business, it appears to be shifting away from unlimited spending. This is further reflected in its hesitance to renew shows for third seasons, based on available data. Moreover, Apple TV+ remains the only major streaming platform without an ad-supported tier, though this may change with the recent hiring of advertising executive Joseph Cady from NBCUniversal.