Apple enforces stricter budgeting for Apple TV+

Apple is reportedly looking to tighten its purse strings when it comes to its Apple TV+ streaming service. The tech giant aims to optimize its spending and ensure it gets the most value for its investment. This strategic shift is expected to result in a reduction in the number of shows on Apple TV+ and a decrease in funding for high-profile projects. Additionally, underperforming series are likely to face quicker cancellations.

Since its launch nearly five years ago, Apple TV+ has faced scrutiny regarding the financial viability of a computer company venturing into film and television production. Despite receiving a record 72 Emmy nominations, Apple is reassessing whether it is overpaying for content. Eddy Cue, Apple’s services chief, has been meeting with studio executives to review budgets and exert more control over project expenditures.

Apple has reportedly spent over $20 billion on Apple TV+ so far. Notably, significant investments in films like “Killers of the Flower Moon,” “Napoleon,” and “Argylle” have not yielded expected returns. Even successful shows like the acclaimed sci-fi series “Severance” have faced financial challenges, with production costs reaching $20 million per episode. The upcoming season of the Emmy-nominated series “The Morning Show” is set to cost Apple $50 million for the cast alone.

To address these financial concerns, Apple is taking steps to reduce upfront payments for shows and shifting more financial responsibility to third-party studios when productions exceed budget estimates. The company has also become more selective in greenlighting new series, opting to cut costs and streamline operations. This approach has led to the cancellation of several series that failed to attract significant audiences.

Despite differing opinions on its success, Apple TV+ has made strides in capturing a share of the U.S. streaming market. While some analysts report a 9% market share, others suggest Apple’s presence is minimal. Apple’s focus on leveraging entertainment to drive hardware sales rather than generating direct profits from Hollywood underscores its unique approach to the streaming industry. Ultimately, Apple’s success with Apple TV+ is measured not just by traditional metrics but also by its ability to enhance the overall Apple ecosystem and drive consumer engagement.