Apple TV+ tightens budgets amid struggle competing with Netflix and other streaming giants
Apple TV is reportedly taking measures to make its streaming business more financially sustainable amid industry-wide production challenges. Eddy Cue, Apple's senior vice president of services, has instructed studio chiefs Zack Van Amburg and Jamie Erlicht to manage project budgets more stringently. Historically, Apple has invested heavily in Hollywood, spending over $500 million on films by directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial investments and high-profile projects, Apple TV Plus has struggled to compete with industry giants like Netflix. According to Nielsen, Apple TV Plus accounts for only 0.2 percent of US TV views, significantly less than Netflix’s 8 percent. This disparity has led Apple to cancel original series projects more quickly and to license more content from competitors, reducing its reliance on costly original programming. Some shows, such as Foundation, have also faced production delays to adhere to budget constraints.
Unlike other media companies such as Disney+ and Paramount+, Apple has not resorted to rapid staff layoffs. Additionally, Apple does not disclose viewership figures for its original programming, even to the creators of the shows, making it difficult to gauge the true performance and impact of its streaming service.
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