Producing rich and original content was always the goal of Apple TV+, a streaming service that saw the Cupertino firm invest upwards of $20 billion in churning out consumable media that would have viewers hooked to their seats. Unfortunately, these costs have ballooned out of control. According to the latest report, an Apple executive wants this business to become more sustainable, which is why that individual has sought the help of Hollywood studio chiefs to watch the company's budgets more carefully and introduce a path toward profitability.
Apple's senior VP of services, Eddy Cue, is pushing two studio executives to watch Apple TV+'s budget with a closer eye
It is no secret that Apple has always aimed for the heavens when it comes to its lofty ambitions, whether it is during product development or when bringing quality content to Apple TV+. Unfortunately, not all billion-dollar investments are fruitful, as the technology giant was previously reported to have cancelled its autonomous car driving project after injecting a whopping $10 billion into the endeavor. Now, it appears that skyrocketing costs are afflicting Apple TV+'s ability to generate a healthy cash flow. According to Bloomberg, Apple's Senior VP of services, Eddy Cue, aims to reduce these costs drastically, but he cannot take on the challenge alone.
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The latest information states that the executive is seeking the help of two Hollywood studio chiefs, Zack Van Amburg, and Jamie Erlicht, to observe the streaming platform's budgets with a closer eye as the company aims to make this side of the business more sustainable. To put into perspective what Apple's current position is, it has spent $500 million alone from notable directors Martin Scorsese, Ridley Scoot, and Matthew Vaughn on making original projects such as Kills of the Flower Moon, Napoleon, and Argyle. While these big-budget endeavors tend to get more eyeballs, the latest report claims that Apple TV+ is attracting fewer views compared to Netflix in a single day.
Additionally, Apple TV+ has invested $50 million in 'The Morning Show' cast, with Reese Witherspoon and Jennifer Aniston cashing in $1 million per episode in the first season. These figures are not for the faint of heart and reveal that Apple needs to introduce budgetary cuts drastically before things get out of hand. At this time, Apple TV+ is estimated to have a measly 0.2 percent of the total viewership in the U.S. In short, the company is eyeing a more disciplined outlook in terms of spending, and just because it is a trillion-dollar entity does not mean it can let its imagination run wild as far as expenditure goes.