Box Office Bombs Mean This for Apple’s Streaming Budget
By Movieguide® Contributor
Apple is reportedly cutting costs for its streaming content after less than satisfactory box office numbers.
Eddy Cue, Apple’s senior vice president of services, is apparently encouraging video programming leads Zack Van Amburg and Jamie Erlicht to “exert more control over spending on projects,” per MSN.
The goal is to get rid of the streamer’s reputation as one of Hollywood’s biggest spenders, as well as attract more people to Apple TV+. Even though Apple spent over $500 million on movies last year, including KILLERS OF THE FLOWER MOON and NAPOLEON, and over $250 million alone on the MASTERS OF THE AIR series, the streaming service is still struggling to compete with the likes of Netflix.
“While its original projects get plenty of attention during award seasons, Bloomberg reports that Apple TV Plus is attracting fewer views per month than Netflix averages in a single day,” The Verge wrote.
Nielsen reported that, of the 40.8% of streaming services that makeup June’s viewing habits, Netflix accounted for 8.4%, while Apple TV+ only made up 0.2%.
However, it’s hard to get an exact read on Apple’s streaming numbers. The company doesn’t share numbers with the public or with the people making their content.
Some have hypothesized that Apple can keep up financially due to the money it makes selling products like iPhones and MacBook computers. The service also recently raised subscription prices. Movieguide® previously reported:
Apple is raising the cost of its Apple TV+ streaming platform from $6.99 per month to $9.99 per month.
This change comes amidst a flurry of price increases across a variety of Apple’s services, including Apple Arcade, Apple News+ and Apple One.
“[Apple remains] focused on delivering the best experiences possible for our customers by consistently adding high-quality entertainment, content, and innovative features to our services,” the company said, noting that the price changes will go into effect next month.
This serves as Apple TV+’s second price increase since it launched at the end of 2019. The price was changed from $4.99 per month to $6.99 just under a year ago.
Even with a $9.99 per month price tag, Apple TV+ remains one of the least expensive options when it comes to streaming platforms, especially given its ad-free experience. In comparison, a standard Netflix account costs $15.49 per month, while a standard Disney+ subscription runs at $13.99 per month.
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