Apple is reportedly aware that it is overspending on TV shows and movies, many of which have gone unnoticed by audiences. The company has allocated an enormous $20 billion to original content for its streaming service, Apple TV+, according to Bloomberg.
Executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht regarding the need to tighten budgets. They have expressed a desire for the platform to move away from its image as the industry’s largest spender.
Apple has invested substantial amounts in productions, including $250 million for the miniseries “Masters of Air,” which underperformed upon release. The company has also spent over $500 million on films by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this significant financial commitment, Apple TV+ captures only 0.2% of TV viewership in the United States, garnering fewer views in a month than Netflix achieves in just 24 hours. The streaming service has also faced challenges in growing its subscriber base.
While Apple does not prioritize streaming in its overall business strategy, the trend of unrestricted spending appears to be waning, as indicated by the company’s reluctance to renew certain shows for third seasons, based on Bloomberg’s findings.
Additionally, Apple TV+ remains the only major streaming service that does not offer an ad-supported tier. However, this may soon change, particularly after the hiring of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.