Apple appears to recognize that it has been overspending on original programming for Apple TV+, reportedly investing around $20 billion in content that may not be widely known or viewed. According to Bloomberg, the company is reassessing its approach to streaming, seeking to manage budgets more effectively.
Apple executive Eddy Cue has been in discussions with Apple TV+ studio heads Zack Van Amburg and Jamie Erlicht about reigning in expenses. The leadership team has indicated a desire to move away from the image of being the biggest spender in the industry.
The tech giant has made significant financial commitments to various shows and films, including $250 million for the miniseries “Masters of Air,” which did not achieve strong viewer engagement upon its release this year. Additionally, Apple has invested over $500 million in films by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite its substantial investments, Apple TV+ holds only 0.2% of the U.S. television viewership, garnering fewer views in a month than Netflix acquires in a single day. The platform has also faced challenges in growing its subscriber base.
While Apple TV+’s struggles have not seemed to alarm the wider company, as streaming is not a primary focus of its overall business, it appears that lavish spending might soon come to an end. This shift is noted in their reluctance to renew shows for additional seasons.
Additionally, Apple TV+ is currently unique among major streaming services for lacking an ad-supported tier, although this may soon change following the hiring of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.