Apple is reportedly aware that it has been overspending on original programming for its Apple TV+ service, with expenditures reaching around $20 billion. According to Bloomberg, Apple executive Eddy Cue is in discussions with the service’s studio heads, Zack Van Amburg and Jamie Erlicht, about reducing budgets. The duo has communicated a desire to change the platform’s image as the biggest spender in the industry.
The tech giant has made significant investments in content, including $250 million for the miniseries “Masters of Air,” which failed to gain traction upon its release earlier this year. Additionally, Apple has spent over $500 million on films from prominent directors like Martin Scorsese and Ridley Scott.
Despite this vast financial commitment, Apple TV+ commands only 0.2% of television viewership in the United States, attracting significantly fewer viewers in a month than Netflix does in just one day. The service has also faced challenges in boosting its subscriber count.
Even though these issues seem not to pose a major concern for Apple, as streaming is not central to its business model, indications suggest that the company is shifting its approach to spending, as seen in its reluctance to renew shows for third seasons. Furthermore, Apple TV+ stands out as the only major streaming platform without an ad-supported tier, a situation that may soon change following the hiring of NBCUniversal ad executive Joseph Cady earlier this year.