Apple has acknowledged that it is spending excessively on original content for its streaming service, Apple TV+, which many consumers have likely never heard of.
After investing approximately $20 billion in original shows and films, the company is considering a new strategy to manage its spending, as reported by Bloomberg. Apple executive Eddy Cue has been engaging with studio heads Zack Van Amburg and Jamie Erlicht about reducing budgets, and there are indications that the streaming service aims to move away from its image as the most extravagant spender in the industry.
High-profile productions, such as the miniseries “Masters of Air,” which cost $250 million and was released this year with limited success, exemplify the scale of Apple’s expenditures. The company has also invested over $500 million in films by renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this substantial investment, Apple TV+ holds only 0.2% of television viewership in the United States, receiving fewer views in a month than Netflix typically sees in just 24 hours. The service has also faced challenges in expanding its subscriber base.
Although Apple’s overarching business does not primarily revolve around its streaming service, it appears to be signaling a shift away from its previously boundless spending habits. This is evident in its reluctance to renew certain shows for a third season, according to Bloomberg’s findings.
Apple TV+ is currently the only major streaming platform that does not offer an advertising-supported tier, a situation that may soon change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.