Apple is reportedly recognizing that it has been overspending on original content for its streaming service, Apple TV+. The company has invested around $20 billion in shows and movies, with little return in viewer engagement, according to a Bloomberg report.
Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about scaling back on production budgets. The team has expressed a desire to change the perception of Apple TV+ as the industry’s largest spender on content.
Notable expenditures include $250 million for the miniseries “Masters of Air,” which released this year but failed to gain significant traction. Additionally, Apple has spent over $500 million on films from renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Currently, Apple TV+ holds a mere 0.2% share of U.S. television viewership, attracting fewer viewers in a month than Netflix does in just 24 hours. The streaming service has also experienced challenges in growing its subscriber base.
Despite these issues, Apple appears to remain unconcerned as streaming is not a primary focus of its business. However, the company’s boundless spending may be coming to an end, as evidenced by its hesitance to renew shows for additional seasons, as reported by Bloomberg.
Additionally, Apple TV+ is the last major streaming platform without an advertising tier, a status likely to change following the recent hiring of Joseph Cady, a former advertising executive from NBCUniversal.