While Apple undoubtedly produces high-quality content, it's no secret that Apple TV+ isn't the most popular streaming service on the market currently. Feeling the sting from rising production costs and lacklustre profits compared to its competitors, Apple has therefore decided to scale back spending on its original programming, according to a new report from Bloomberg.
The iPhone, iPad and HomePod manufacturer has reportedly spent over $20 billion to produce its original programming and films, with $500 million of that reportedly being spent on films from high-profile directors such as Martin Scorsese, Matthew Vaughn and Ridley Scott. A further $250 million was reportedly spent on the Masters Of The Air, which earned a spot in our best miniseries list.
Despite investing in high-quality content from notable writers and directors and, in turn, getting mostly favourable reviews for much of this original programming, Apple reportedly isn't seeing the returns when it comes to viewing figures. Argyle, the action comedy spy movie directed by Matthew Vaughn, made less than half of its reported $200 million budget at the box office, and Martin Scorsese's Killers Of The Flower Moon also fell short, only earning a reported $67 million at the box office on a $150 million budget; even though it was nominated for nine Academy Awards.
At-home numbers are equally disappointing for Apple TV+ according to the Bloomberg report, with the major bombshell being that Netflix attracts more viewers in a day than Apple TV+ does in a month. We're not totally blown away by that fact, as Apple focuses more on original programming compared to Netflix, which features a mix of original and well-known third-party content, it's concerning no matter how you look at it.
So how is Apple reacting to this? Bloomberg has identified a trend in cancelling projects faster, with the average length of shows dropping from 3.67 seasons in 2019 (the same year Apple TV launched) to 2.00 in 2021. The percentage of shows that have received a third season on Apple TV+ has also dropped from 100 per cent to just 22 per cent within the same time frame.
Despite scaling back long-term productions, Apple is reportedly retaining its ethos of pumping money into high-quality productions, with a focus on movie stars and highly regarded directors. It's been reported that The Morning Show stars Jennifer Aniston and Reese Witherspoon, who were paid $1m per episode in the first season of the show, will now earn over quadruple that for season four which has just entered production. Apple is reportedly spending $50 million on the cast of that show alone, which suggests that it's committed to upholding its existing, well-regarded programming, while also being more conscious and conservative of shows that aren't working quite as well.
Furthermore, Apple is apparently being more selective of the shows it purchases to feature on its platform, with sellers reporting that Apple is declining offers it would have quickly snapped up just a couple of years ago. It's also being more careful about its spending in other areas, with the production of the upcoming season of Foundation being delayed in order to not exceed the budget. This was partly blamed on Hollywood strikes; however, Apple has also asked the producers to make adjustments to account for additional costs relating to said strikes.
While it may be turbulent times for the streaming platform, we would be very surprised to see Apple even consider shuttering its streaming business. However, with the competitive nature of the streaming beast, we expect to see some changes come to the platform.
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Read our full Apple TV+ review
As well as our review of the Apple TV 4K video streamer
The Apple TV 4K is comfortably the best streamer, but only if you change these settings