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

Ikenna ChurchillJuly 23, 20241 Mins read505

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