apple cuts hollywood budget after disappointing box office

Apple is reportedly shifting its Hollywood spending strategy following limited box office success. Senior Vice President of Services, Eddy Cue, has tasked co-video programming leads to exert tighter control over budgets. Apple aims to shake off its "big spender" reputation in Hollywood and attract more viewers to Apple TV+, a streaming service currently capturing only 0.2% of U.S. TV viewership according to Nielsen. Despite the lavish spending on high-profile projects like Martin Scorsese's Killers of the Flower Moon and Ridley Scott's Napoleon, the box office returns have not met expectations. Notably, although Apple's films and series receive numerous award nominations, this has not translated into mass viewership. The streaming service's limited back catalog, despite popular original programming such as Severance and Ted Lasso, remains a challenge.

Apple TV+ is struggling to attract new viewers due to its focus on original programming rather than a substantial back catalog, which sets it apart from competitors like Netflix and Hulu that offer a mixture of classic shows and new content. Additionally, despite heavy investment in high-profile projects, viewer numbers have not matched these financial outlays, leading to a strategic reevaluation.

Apple TV+ launched in November 2019 and aimed to carve out a niche with high-quality original content rather than relying on licensed shows. Key projects have included critical successes and award-winning titles, but Apple’s unique content-first strategy contrasts with larger libraries of older hits that drive continuous viewership on competing platforms.