Apple is reportedly aware that it has been overspending on original TV shows and movies, many of which have gone largely unnoticed by viewers. The tech giant has invested approximately $20 billion in content for its streaming service, Apple TV+, but is now considering adjustments to its spending strategy.
According to sources, Apple executive Eddy Cue has engaged in discussions with studio heads Zack Van Amburg and Jamie Erlicht about cutting back budgets and altering the platform’s expensive image. Despite lavish expenditures, which include $250 million for the miniseries “Masters of Air” released this year to minimal attention, Apple TV+ has managed only 0.2% of TV viewership in the U.S. In comparison, Netflix achieves more views in a single day than Apple TV+ sees in an entire month, and the service has faced challenges in subscriber growth.
While Apple does not view streaming as a central aspect of its business, the company seems to be signaling a shift away from limitless spending, as indicated by its reluctance to renew shows beyond their second season. Apple TV+ currently stands out as the only major streaming platform without an ad-supported tier, but this may change following the recruitment of Joseph Cady, a former ad executive from NBCUniversal, earlier this year.