Apple is reportedly aware of its excessive spending on television shows and movies that many audiences may not be familiar with. The tech company has invested an immense $20 billion in original content for its streaming service, Apple TV+, and is currently reassessing its approach, according to Bloomberg.
Eddy Cue, an Apple executive, is in discussions with studio heads Zack Van Amburg and Jamie Erlicht to rein in production budgets. Van Amburg and Erlicht have mentioned to colleagues that the platform aims to shake off its image as the biggest spender in the industry.
Apple has made significant financial commitments, such as $250 million for the miniseries “Masters of Air,” which launched this year but received minimal audience engagement. Additionally, the company has spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these investments, Apple TV+ holds only 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix does in just one day. The service has also encountered challenges in increasing its subscriber base.
While these issues do not seem to overly concern Apple, as streaming is not central to its business model, signs indicate that the era of unlimited spending may be coming to an end. Bloomberg data shows that the company is already hesitant to renew shows for a third season.
Notably, Apple TV+ is the only major streaming service currently without an ad-supported tier. However, this may change following the hiring of advertising executive Joseph Cady from NBCUniversal earlier this year.