Apple is reportedly aware that it is overspending on its TV shows and movies, many of which audiences may not even recognize.
The company has invested an astounding $20 billion in original content for Apple TV+, according to Bloomberg. This has led to discussions among Apple executives, including Eddy Cue and the heads of Apple TV+’s studios, Zack Van Amburg and Jamie Erlicht, about tightening budgets and moving away from its image as the industry’s largest spender.
Apple has poured considerable amounts of money into high-profile projects, such as the $250 million miniseries “Masters of Air,” which has not garnered significant audience interest. Additionally, it has invested over $500 million in films featuring renowned directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these financial commitments, Apple TV+ accounts for only 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix draws in just 24 hours. The platform has also faced challenges in growing its subscriber base.
While Apple does not seem overly concerned about the struggles of its streaming service, as it is not central to its primary business, indications suggest a shift away from limitless spending is on the horizon. This is further reflected in the company’s hesitance to renew shows for third seasons.
Notably, Apple TV+ remains the last significant streaming service without an advertising tier, a situation that could soon change with the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.