Apple is acknowledging its excessive spending on original TV shows and movies, many of which have gone unnoticed by viewers. The company has reportedly invested around $20 billion in content for its streaming service, Apple TV+. To address this spending, Apple executive Eddy Cue has been discussing budget constraints with the heads of its TV studios, Zack Van Amburg and Jamie Erlicht. The aim is to move away from the perception of being the highest spender in the industry.
This extravagant spending includes a notable $250 million for the miniseries “Masters of Air,” which has not garnered significant viewer interest. Furthermore, Apple has invested over $500 million in films from acclaimed directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn. Despite these financial commitments, Apple TV+ currently holds a mere 0.2% share of TV viewership in the United States, with its monthly views lagging far behind Netflix’s daily totals.
While Apple TV+ has been experiencing challenges in growing its subscriber base, it appears that the parent company is not overly concerned, as streaming does not represent a core part of its business strategy. However, the trend of unrestricted spending may soon come to an end, as indicated by Apple’s cautious approach toward renewing shows for third seasons.
Notably, Apple TV+ is the last major streaming service without an advertising tier, but this may soon change following the recent hiring of advertising executive Joseph Cady from NBCUniversal earlier this year.