Apple is recognizing that its expenditures on original TV shows and movies may be excessive, with significant amounts spent on productions that are largely unfamiliar to audiences. The company reportedly invested around $20 billion in content for its streaming service, Apple TV+, yet has expressed a desire to reduce its budget allocations.
According to reports, Apple executive Eddy Cue has been in talks with studio heads Zack Van Amburg and Jamie Erlicht to discuss tightening financial constraints. The studio chiefs have indicated a desire to shift the platform’s image away from being viewed as the largest spender in the industry.
Apple’s financial commitments have included a staggering $250 million for the miniseries “Masters of Air,” which received minimal audience engagement upon release. Additionally, the company has invested over $500 million in films from prominent directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial expenditures, Apple TV+ holds only a 0.2% share of television viewership in the United States, garnering fewer views in a month than what Netflix achieves in a single day. Furthermore, Apple TV+ has faced challenges in attracting new subscribers.
However, Apple has not reacted with alarm to the service’s difficulties, as streaming does not form a fundamental part of its business model. Still, the era of unrestricted spending appears to be coming to an end, as evidenced by the company’s hesitation to renew series for a third season.
Notably, Apple TV+ remains the last major streaming platform without an advertising tier, a situation likely to change following the company’s hire of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.