Apple TV+ Spending Surpasses $20 Billion, Prompting Cost-Cutting Measures by Company Executive
Apple TV+ has been on a mission to produce high-quality and original content, with the tech giant investing over $20 billion in creating engaging media for its viewers. However, the costs associated with this endeavor have spiraled out of control, prompting an Apple executive to seek ways to make the business more sustainable. The latest reports indicate that Eddy Cue, Apple’s senior VP of services, is urging two Hollywood studio executives to closely monitor the budget of Apple TV+ in order to steer it towards profitability.
Apple has always set ambitious goals for itself, whether in product development or content creation for Apple TV+. Despite its aspirations, not all of its billion-dollar investments have yielded positive results. For instance, the company previously abandoned its autonomous car project after pouring in a massive $10 billion. Now, the escalating costs of Apple TV+ are hindering its ability to generate a healthy cash flow. Eddy Cue is determined to significantly reduce these costs, but acknowledges that he cannot tackle this challenge alone.
To address the financial concerns, the executive has enlisted the help of two prominent Hollywood studio chiefs, Zack Van Amburg and Jamie Erlicht, to closely monitor the streaming platform’s budgets. Apple is striving to make this aspect of the business more financially viable. Noteworthy directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn have been involved in creating original projects like Kills of the Flower Moon, Napoleon, and Argyle, with Apple investing $500 million in these ventures. Despite the allure of big-budget productions, Apple TV+ reportedly attracts fewer viewers compared to Netflix on a daily basis.
Moreover, Apple TV+ has allocated $50 million to the cast of ‘The Morning Show,’ with stars like Reese Witherspoon and Jennifer Aniston earning $1 million per episode in the first season. These substantial figures underscore the need for Apple to implement significant budget cuts before the situation escalates. Currently, Apple TV+ holds a mere 0.2 percent share of total viewership in the U.S., signaling the company’s intent to adopt a more disciplined approach to spending. Being a trillion-dollar entity does not exempt Apple from exercising fiscal prudence, especially in the realm of extravagant expenditures.
In conclusion, Apple is reevaluating its financial strategy for Apple TV+ to ensure long-term sustainability and profitability. By enlisting the expertise of Hollywood executives and reining in excessive spending, the tech giant aims to navigate the challenges of the competitive streaming landscape while delivering compelling content to its audience.
