Apple is reportedly aware that it is overspending on television shows and movies that many viewers may not be familiar with. According to a Bloomberg report, the company has invested around $20 billion in original content for its streaming service, Apple TV+.
Apple executive Eddy Cue has been in discussions with the heads of Apple TV+’s studio division, Zack Van Amburg and Jamie Erlicht, about reducing budgets. The leadership aims to change the service’s image as the highest spender in the streaming industry.
Apple has invested significantly in high-profile projects, including the $250 million miniseries “Masters of Air,” which premiered this year but failed to gain much attention. The company has also spent more than $500 million on films by renowned directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these hefty investments, Apple TV+ holds only a small share of TV viewership in the US, capturing a mere 0.2%, and is struggling to attract new subscribers. The platform’s challenges appear not to deeply concern Apple, as streaming is not a central part of its overall business model. However, the company’s approach to spending seems to be shifting, marked by a hesitancy to renew shows for additional seasons.
Notably, Apple TV+ stands as the last major streaming service without an advertising tier, though this may soon change following the appointment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.