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Apple TV+ Curbs Costs After Expensive Projects Fail to Capture Viewers

Apple is scaling back its Hollywood spending after investing over $20 billion in original programming with limited success, Bloomberg reports.

This shift comes after the streaming service, which launched in 2019, struggled to capture a significant share of the market, accounting for only 0.2% of TV viewership in the U.S., compared to Netflix's 8%. Despite heavy investment, critical acclaim, and numerous award nominations, Apple TV+ purportedly generates less viewing in one month than Netflix does in a single day.

Ted Lasso was the most-watched streaming show of 2023, ‌Apple TV+‌ still accounts for a smaller share of top ten hits than any streaming service save for Paramount+.

Apple's initial foray into streaming was marked by lavish spending on high-profile projects and talent, including deals with big names like Oprah Winfrey, Steven Spielberg, and Jennifer Aniston. The company's Hollywood operation, led by studio chiefs Zack Van Amburg and Jamie Erlicht, positioned itself as a talent-friendly destination, reminiscent of HBO, offering creators seemingly unlimited financial resources.

Masters of the Air. Despite the strong reviews and awards nominations, these projects have not yielded the viewership that Apple apparently hoped for.

Foundation was postponed to prevent budget overruns caused by delays related to the 2023 actors and writers strikes.

Severance surged to over $20 million per episode due to pandemic-related delays, internal conflicts, and additional expenses such as hiring House of Cards creator Beau Willimon for script contributions. Management has asked the producers of Severance to reduce the budget for future seasons, emphasizing the need for financial sustainability.

Apple has also become more selective in acquiring new projects, declining to buy some shows that sellers believe the company would have accepted just a few years ago. The company allegedly wants to shed the image of being Hollywood's biggest spender and bring more discipline and strategy to its content investments.

The Morning Show, where cast salaries alone exceed $50 million for the upcoming season, ‌Apple TV+‌ is becoming more fiscally conservative. The Morning Show stars Jennifer Aniston and Reese Witherspoon will each earn more than $2 million per episode. This recalibration comes at a time when other major studios like Disney, Warner Bros., and Paramount are similarly cutting back on streaming budgets due to mounting losses.

Tags: Bloomberg, Apple TV Plus

This article, "Apple TV+ Curbs Costs After Expensive Projects Fail to Capture Viewers" first appeared on MacRumors.com

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