Apple is reportedly recognizing that it is overspending on original TV shows and movies that have largely gone unnoticed by the public. The company has invested approximately $20 billion in original content for its streaming service, Apple TV+, but is now looking for ways to trim its budget.
Bloomberg indicated that Apple executive Eddy Cue has been in discussions with the service’s studio heads, Zack Van Amburg and Jamie Erlicht, to reduce expenditure. The duo has reportedly shared that Apple TV+ aims to change its image as the largest spender in the industry.
The tech giant has indeed spent lavishly on various productions, including $250 million for the miniseries “Masters of Air,” which failed to gain significant traction upon its release this year. Additionally, Apple has invested over $500 million in films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these expenditures, Apple TV+ captures only 0.2% of the US television viewership, receiving fewer views in a month than what Netflix attracts in just one day. The service is also facing challenges in growing its subscriber base.
Although Apple TV+’s struggles do not seem to be a major concern for the company—given that streaming is not central to its operations—the era of unrestricted spending may soon come to an end. This shift is already reflected in Apple’s hesitance to renew shows for third seasons, as reported by Bloomberg.
Notably, Apple TV+ remains the only major streaming platform without an advertising tier, a situation that might change following the recent hiring of Joseph Cady, a former ad executive from NBCUniversal.