Apple is reportedly aware of its excessive spending on TV shows and movies that have largely gone unnoticed by audiences. The company has expended around $20 billion on original content for its Apple TV+ platform, according to Bloomberg.
Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht to consider more budget-conscious strategies. Both Van Amburg and Erlicht have indicated a desire for the streamer to shift away from its image as the industry’s top spender.
This includes significant financial commitments, such as $250 million for the miniseries “Masters of Air,” which received minimal attention upon its release this year. Moreover, Apple has invested over $500 million in films from well-known directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial investments, Apple TV+ holds only 0.2% of total TV viewership in the US, trailing behind Netflix, which achieves in just a day the views that Apple accumulates in an entire month. Increasing subscriber numbers has also proven challenging.
Although Apple TV+ is facing difficulties, it appears that the tech giant is not overly concerned as streaming is not a central part of its business model. However, the trend of unlimited spending may soon be curtailed, as indicated by the company’s hesitancy to renew shows for a third season.
Additionally, Apple TV+ is currently the only major streaming service without an advertising tier, a situation that may change following the hiring of ad executive Joseph Cady from NBCUniversal this year.