Apple is reportedly aware that it has been overspending on original TV shows and movies that are largely unfamiliar to the public. The company has invested an astonishing $20 billion in original content for its Apple TV+ platform, as indicated by recent reports.
According to Bloomberg, Apple executive Eddy Cue has been collaborating with studio heads Zack Van Amburg and Jamie Erlicht to address budget management. The duo has been suggesting a shift in the platform’s strategy to move away from its image as the industry’s largest spender.
Among its hefty investments, Apple allocated $250 million for the miniseries “Masters of Air,” which launched this year but failed to gain significant traction. Additionally, the company has spent over $500 million on films from renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these enormous expenditures, Apple TV+ holds just 0.2% of the television viewership in the United States, receiving fewer views in one month than Netflix captures in just 24 hours. The service has also faced challenges in attracting new subscribers.
While Apple appears to remain unfazed by the struggles of its streaming service, given that streaming does not form the cornerstone of its business model, its era of unchecked spending seems to be coming to an end. This is reflected in its hesitance to renew certain shows for a third season, as reported by Bloomberg.
Notably, Apple TV+ is currently the only major streaming service lacking an ad-supported tier, a situation that may soon change with the recent hiring of advertising executive Joseph Cady from NBCUniversal.