Apple To Cut Spending on Original Apple TV+ Contents After Years of Losses

Apple has reportedly spent over $20 billion producing original TV shows and movies since the launch of Apple TV+. While the platform has garnered critical acclaim and numerous awards, it has struggled to attract a substantial audience. According to reports, Apple TV+ accounts for only 0.2% of TV viewing in the US, a stark contrast to streaming giants like Netflix(8%).

In an effort to address these losses, Apple is reportedly taking steps to control its spending on original content. Eddy Cue, Apple’s services chief, has been holding regular meetings with studio heads Zack Van Amburg and Jamie Erlicht to scrutinize budgets and encourage more fiscal responsibility. The studio has been known for its lavish spending on high-profile projects, including films by renowned directors like Martin Scorsese and Ridley Scott. However, many of these films have underperformed at the box office, prompting a reevaluation of their spending strategy.

While Apple TV+ has produced some critically acclaimed shows like “Ted Lasso,” it has struggled to match the popularity and viewership of competitors like Netflix and Disney+. This has raised questions about the sustainability of Apple’s current approach to original content production. The company is now exploring ways to balance its commitment to quality programming with the need to attract a larger audience and generate more revenue.

The current streaming model employed by most of the steaming services in a ploy to win the “Streaming Wars” is unsustainable. As platforms grapple with rising costs and declining profits, they may resort to further price hikes, content cuts, and aggressive advertising strategies. This could lead to a less enjoyable viewing experience for consumers, with higher prices, less diverse content, and more intrusive ads.

The streaming wars may have brought us a golden age of television, but it’s a golden age with a dark side. As the industry evolves, it’s crucial for consumers to be aware of the potential downsides and make informed choices about how they consume content.

Navigating the Streaming Landscape

Despite these challenges, movie lovers can still thrive in the streaming era by adopting a few savvy strategies. First and foremost, be selective and strategic with your subscriptions. Resist the urge to subscribe to every platform and instead choose a few that cater to your specific tastes. Take advantage of free trials to explore new options before committing financially. Additionally, consider bundling services or rotating subscriptions to maximize your viewing options without overspending.

Advocating for Change

As consumers, we hold the power to shape the future of the streaming industry. Voice your concerns about pricing, content decisions, or user experience through customer service channels or social media. Additionally, support fair compensation for the creators who bring your favorite movies and shows to life. By advocating for our interests and those of the creative community, we can ensure that the streaming landscape evolves into a sustainable and enjoyable experience for everyone.

Sources

CNBC: Consumers spend an average $133 more each month on subscriptions than they realize: https://www.cnbc.com/2022/06/02/consumers-spend-133-more-monthly-on-subscriptions-than-they-realize.html

Bloomberg: Apple Tries to Rein In Hollywood Spending After Years of Losses: https://www.bloomberg.com/news/newsletters/2024-07-21/apple-tries-to-rein-in-hollywood-spending-after-years-of-losses?srnd=homepage-asia