Apple is reportedly aware that it has been overspending on television shows and movies, many of which have gone unnoticed by audiences. According to Bloomberg, the tech giant is reconsidering its approach to Apple TV+ following an extravagant investment of approximately $20 billion in original content.
Apple executive Eddy Cue has been conferring with studio heads Zack Van Amburg and Jamie Erlicht about the need to tighten budgets. The studio heads have communicated a desire for the streaming service to shed its image as the industry’s most lavish spender.
The company has poured significant resources into high-profile projects, such as the $250 million miniseries “Masters of the Air,” which garnered minimal audience engagement upon its release this year. Additionally, over $500 million has been allocated to films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite the substantial financial outlay, Apple TV+ manages to capture only 0.2% of TV viewership in the United States, with its monthly viewership lagging far behind Netflix, which achieves more views in just a single day. Apple TV+ has also faced challenges in boosting its subscriber count.
While Apple appears untroubled by these issues—since streaming is not central to its business model—the company has been signaling a shift away from unrestricted spending. This is evident in its cautious approach to renewing shows for third seasons. Apple TV+ currently stands out as the only major streaming platform without an ad-supported tier, a situation that may soon change following the recent hiring of advertising executive Joseph Cady from NBCUniversal.