Apple acknowledges that it has been overspending on original TV shows and films that many viewers may not even recognize.
The tech giant has reportedly invested around $20 billion in original content for its streaming service, Apple TV+, and is now reviewing its spending strategy. According to Bloomberg, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets and altering the company’s approach to content production. There are indications that the service aims to change its image as the biggest spender in the industry.
Apple’s expenditures have included a staggering $250 million for the miniseries “Masters of the Air,” which launched this year but did not gain significant viewership. Additionally, the company has spent over $500 million on films from acclaimed directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial investments, Apple TV+ holds just 0.2% of the television viewership market in the US, attracting fewer viewers in a month than Netflix does in just one day. The service has also faced challenges in increasing its subscriber base.
While Apple’s streaming service issues have not raised major concerns for the broader company, as streaming does not constitute its primary business focus, indications suggest an end to unrestricted spending is approaching. This shift is reflected in the company’s hesitance to renew certain shows for third seasons.
Additionally, Apple TV+ remains the only major streaming platform without an ad-supported tier, a situation that may soon change following the hiring of Joseph Cady, a former advertising executive from NBCUniversal.