Home Entertainment Apple Cuts Back on Hollywood Spending After $20 Billion in Losses
EntertainmentNews

Apple Cuts Back on Hollywood Spending After $20 Billion in Losses

415

Apple is adjusting its approach to Hollywood spending after spending over $20 billion on original TV shows and movies that haven’t attracted many viewers. Meetings led by Eddy Cue with studio chiefs Zack Van Amburg and Jamie Erlicht focus on tighter budget control. Apple spent $500 million on movies by Martin Scorsese, Ridley Scott, and Matthew Vaughn and $250 million on the World War II miniseries “Masters of the Air,” but these projects have underperformed. The company is now prioritising financial sustainability and reducing upfront payments, reflecting a broader industry trend of cutbacks due to mounting losses.

Apple TV+, which launched in 2019, has struggled to capture a significant market share, accounting for just 0.2% of TV viewership in the U.S. Its high-profile projects, including “The Morning Show” and “Severance,” have garnered critical acclaim and awards but haven’t achieved widespread popularity. The company is also becoming more selective about new acquisitions and is asking producers to reduce budgets on existing shows like “Foundation” and future seasons of “Severance.”

Initially, Apple aimed to position itself as a talent-friendly destination, akin to HBO, and paid top dollar for high-profile talent. However, this approach did not translate into substantial viewership. The company is now trying to bring more discipline and strategy to its Hollywood operations, reflecting a shift seen across other major studios like Disney and Warner Bros. Despite the high costs, Apple views its entertainment investments as a way to bolster its broader business, primarily by promoting sales of its consumer devices.

Apple is learning from its experiences in Hollywood and aims to balance its ambitious content goals with a more financially sustainable model. The shift includes reducing upfront payments, cancelling underperforming shows more quickly, and delaying production to manage costs. This recalibration comes as Apple seeks a more disciplined and strategic approach to its streaming service while maintaining its commitment to high-quality content.

Read: Nigerians Should Prepare For Pump Price Hike, Marketers Warn

Ngozi Okonjo-Iweala Considering Second Term as WTO Director-General Amid Broad International Support

Kamala Harris Kicks Off Campaign with Beyoncé’s “Freedom,” Signaling Superstar’s Support

About The Author

Written by
Ikenna Churchill

Culture storyteller

Related Articles

NewsTravel

Chad Suspends Visas for US Citizens in Response to Trump’s Recent Travel Ban

Chad has announced the suspension of visa issuance to United States citizens,...

FinanceNews

Ghana Places Former Finance Minister Ofori-Atta on INTERPOL Red Notice

Interpol has issued a Red Notice for Ghana’s former finance minister, Ken...

Seyi Tinubu flying presidential jet
News

Tinubu’s Silence on Son’s Use of Presidential Jet Draws Contrast with Mongolian PM’s Resignation

President Bola Tinubu has been criticised over the apparent misuse of state...

Umo Join APC
NewsPolitics

Akwa Ibom Governor Eno Dumps PDP Following West Africa Weekly’s Report

Governor Umo Eno of Akwa Ibom State has officially dumped the Peoples...