Apple is aware that it has been overspending on original TV shows and movies that many viewers might not recognize or have heard of.
According to Bloomberg, the company has invested a staggering $20 billion in original content for its streaming service, Apple TV+. In light of this, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to tighten budgets. The two leaders have reportedly indicated that the service aims to shake its image as the largest spender in the industry.
Apple has invested significant amounts in productions, such as $250 million for the miniseries “Masters of Air,” which was released this year but failed to generate much interest. Additionally, the company has spent over $500 million on films from prominent directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these vast expenditures, Apple TV+ commands just 0.2% of television viewership in the United States, attracting fewer views in a month than Netflix manages in just one day. The platform has also faced challenges in boosting its subscriber numbers.
While the streaming service’s struggles have not raised major concerns within Apple, as streaming does not constitute a core part of its business, it seems that the era of unrestricted spending might be coming to an end. This has been reflected in the company’s hesitance to renew certain shows for third seasons.
Notably, Apple TV+ remains the only major streaming service without an advertising tier, a situation that may soon change following the appointment of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.