Apple is recognizing that it has overspent on TV shows and movies that many viewers may not be familiar with. According to reports, the company has invested around $20 billion in original content for its streaming service, Apple TV+, and is now exploring ways to reduce this budget.
Apple executive Eddy Cue has been in discussions with the heads of Apple TV+, Zack Van Amburg and Jamie Erlicht, about scaling back expenditures. They are reportedly aiming to change the platform’s image as the industry’s highest spender.
The company has made substantial financial commitments for various projects, including $250 million for the miniseries “Masters of Air,” which premiered this year but failed to gain significant traction. Additionally, Apple has spent over $500 million on films by renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive investment, Apple TV+ holds only 0.2% of television viewership in the U.S., with its monthly views being significantly lower than the daily views Netflix receives. The service has struggled to grow its subscriber base.
Although Apple TV+’s challenges have not raised alarms within the company, as streaming is not a core aspect of its business, the era of unrestricted spending appears to be coming to an end. This indication is supported by the company’s hesitance to renew shows for a third season, as reported by Bloomberg.
Additionally, Apple TV+ remains the only major streaming platform without an advertising tier, a situation likely to change following the hiring of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.