Apple is becoming aware that its investment in original TV shows and movies may be excessive, with reports indicating that the tech giant has spent approximately $20 billion on content for its streaming service, Apple TV+.
According to Bloomberg, Apple executive Eddy Cue has recently met with the heads of Apple TV+ studios, Zack Van Amburg and Jamie Erlicht, to discuss reducing spending. The studio chiefs are reportedly eager to move away from Apple TV+ being known as the industry’s biggest spender.
Apple has made significant financial commitments to projects, such as investing $250 million in the miniseries “Masters of Air,” which debuted this year but struggled to gain traction. The company has also spent over $500 million on films by acclaimed directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these massive expenditures, Apple TV+ claims only a 0.2% share of TV viewership in the U.S., attracting fewer viewers in an entire month than Netflix does in just 24 hours. Additionally, the service is facing challenges in growing its subscriber base.
While Apple TV+’s struggles do not seem to concern the company significantly—given that streaming is not central to its business—there are indications that the era of unrestrained spending is coming to an end. This is reflected in its reluctance to renew shows for third seasons, according to Bloomberg.
Notably, Apple TV+ remains the last major streaming service without an advertisement-supported tier. However, this may soon change, as the company recently hired Joseph Cady, a former NBCUniversal advertising executive, to potentially navigate this new direction.