Apple is reportedly aware of its excessive spending on TV shows and movies that many viewers may not recognize. According to Bloomberg, the company has invested a staggering $20 billion in original content for Apple TV+.
Apple executive Eddy Cue has been meeting with studio heads Zack Van Amburg and Jamie Erlicht to discuss budget cuts. They aim to shift the platform’s image away from being labeled the industry’s largest spender.
Apple has invested heavily in productions, such as $250 million for the miniseries “Masters of Air,” released this year with minimal impact. The firm has also allocated over $500 million for films directed by notable filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these significant expenditures, Apple TV+ accounts for just 0.2% of television viewership in the U.S., drawing fewer viewers in a month than Netflix garners in a mere day. The platform has also encountered challenges in growing its subscriber base.
While Apple TV+ has faced difficulties, it hasn’t caused major concern for the tech giant, as streaming is not a primary focus of its operations. However, the company’s era of limitless spending appears to be coming to an end, as evidenced by its hesitance to renew shows for third seasons, as reported by Bloomberg.
Currently, Apple TV+ is the last major streaming service without an advertisement tier, but this may soon change following the hiring of Joseph Cady, an ad executive from NBCUniversal, earlier this year.