Apple is recognizing that it’s overspending on original content for its streaming service, Apple TV+, particularly on shows and movies that have not gained significant recognition. According to reports, the company has invested about $20 billion in original programming.
Apple executive Eddy Cue has been discussing strategies with studio heads Zack Van Amburg and Jamie Erlicht to control production budgets. The leadership at Apple TV+ is reportedly keen on changing the perception of being the largest spender in the industry.
Among its hefty expenditures is a $250 million investment in the miniseries “Masters of Air,” released this year, which failed to generate substantial interest. The service has also spent over $500 million on projects with renowned directors like Martin Scorsese and Ridley Scott.
Despite these colossal investments, Apple TV+ holds a paltry 0.2% share of television viewership in the United States, equating to fewer weekly views than Netflix receives in just one day. Subscriber growth has also been a challenge for Apple.
Although Apple’s focus is not primarily on streaming, the company appears to be shifting away from unlimited spending, as indicated by its hesitation to renew certain shows for their third seasons. Additionally, Apple TV+ remains the last significant streaming platform without an ad-supported tier, a situation likely to change following the recruitment of Joseph Cady, an advertising executive from NBCUniversal.