Apple is reportedly aware that its spending on original TV shows and movies might be excessive, particularly considering many of these titles have gone largely unnoticed by audiences. Recent reports indicate that the tech giant has invested around $20 billion in original content for its streaming service, Apple TV+.
Apple executive Eddy Cue has been conducting meetings with studio heads Zack Van Amburg and Jamie Erlicht to discuss budget constraints and reevaluating the platform’s spending habits. There is a push within the company to move away from the image of being the industry’s largest spender.
Significant expenditures include $250 million on the miniseries “Masters of Air,” which debuted this year but failed to capture much viewer interest. Additionally, over $500 million has been invested in films by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this substantial financial commitment, Apple TV+ currently holds just 0.2% of the U.S. television viewership market and garners fewer views in a month than Netflix achieves in a single day. The platform has also faced challenges in attracting new subscribers.
Although the streaming service’s limited success does not seem to greatly concern Apple—given that streaming is not central to its overall business model—the company appears to be hinting at a shift from its previously boundless budget. This change is evident in its hesitance to renew shows for third seasons, according to data from Bloomberg.
Notably, Apple TV+ stands as the only major streaming service without an advertising tier, a situation that might change following the hiring of advertising executive Joseph Cady from NBCUniversal earlier this year.