Apple is reportedly aware that it has been overspending on original content for its streaming service Apple TV+, having invested around $20 billion to date, according to Bloomberg.
Sources indicate that Apple executive Eddy Cue has been in discussions with the heads of Apple TV+’s studio division, Zack Van Amburg and Jamie Erlicht, with a focus on reducing production budgets. Van Amburg and Erlicht have communicated a desire for the platform to improve its image and move away from being perceived as the industry’s biggest spender.
Apple has allocated significant amounts for individual projects, such as $250 million for the miniseries “Masters of Air,” released this year but failed to generate substantial interest. Additionally, the company has invested over $500 million in films directed by renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this massive financial commitment, Apple TV+ holds only a 0.2% share of television viewership in the US, receiving fewer views in a month than Netflix accumulates in just a single day. The platform has also faced challenges in growing its subscriber base.
While Apple TV+’s struggles have not greatly alarmed the tech giant—due to streaming being a non-core part of its business—the company appears to be moving towards more cautious spending practices. This shift is signaled by its reluctance to renew series for third seasons, as per Bloomberg’s findings.
Moreover, Apple TV+ remains the only significant streaming service without an advertising tier, though this might change following the appointment of NBCUniversal ad executive Joseph Cady earlier this year.