Tue. Dec 10th, 2024

Apple plans to cut back because it gets less views

By nr39r Aug1,2024
News

There is a large series that has a lot of luxury but not much income. It is imperative that Apple put an end to the waste.

It is more or less obvious that Netflix has won the war on streaming services. Not only has it gained a significant lead in revenue and subscriber numbers (at least until Prime Video releases clearer figures), but it has also been actively consuming the catalogs of its competitors for some time now, while the latter have allowed themselves to be parasitized. Now that we’ve reached a new phase in this more or less triumphant era of Netflix, we can say that its opponents are beginning to withdraw from the struggle.

Netflix comes out on top. The results of Netflix’s second quarter of 2024 were published last week, and they were extremely impressive. The company boasted that it had gained eight million members to its total of about 277, that it had generated almost 9.56 billion dollars, and that it had produced an operating profit of 2.6 billion, which is a 44% rise over what it had accomplished in 2023. When compared to what was accomplished in 2019, just a few years ago and before the epidemic, it is already seven times greater.

Spreads cuts all over. For a few weeks now, we have been witnessing quite large cuts in the rest of the platforms in an effort to limit the losses that are affecting the entire industry. We are noticing it in the decreased amount of production (something that has also affected Netflix, despite the good results), but most importantly, it is in the measures that have been taken to multiply income: advertising is already a part of almost all offers, and they have raised the price of subscriptions. These decisions were made after a 2023 that began with declared losses throughout the sector.

Apple, the production firm that was unsuccessful. Apple’s career began as a competitor to the main Hollywood studios, and it began with a lot of ambition and spectacular risks. However, things are not going very well, and in theaters, it has chained one failure after another. It was Matthew Vaughn’s action comedy ‘Argylle’ that was the most recent one. It had a budget of 200 million dollars but only made 96 million dollars. The film “The Killers of the Moon,” directed by Martin Scorsese, was a critical success but a business failure that cannot be compared: it cost 200 million dollars to make, yet it only made 15.6 million dollars. It fared somewhat better than ” Napoleon,” which was directed by Ridley Scott and had a comparable budget and earnings of 219.4 million dollars; but, in order for a picture like this to be considered a success, its earnings need to be closer to 500 million.

Makes cuts. This is an expense that needs to be reduced, and it extends to the streaming sector. According to Bloomberg, more than twenty billion dollars are being invested in the magnificent and opulent series that are accessible through Apple TV+. Bloomberg also asserts that they have learnt through a dozen interviews that the head of Apple services, Eddy Cue, as well as the heads of the studios, Zack Van Amburg and Jamie Erlicht, have evaluated budgets and put in place strategies to control spending. This information was obtained by Bloomberg.

A small number of people. One example is provided by Bloomberg in order to make things a little bit more clear. “Masters of the Air” is the sole series that has been reported to have appeared in the audience charts that have been published by Nielsen; yet, it is ranked lower than much more modest products that have been produced by Netflix. And during the entirety of the year, it has been the only one from the platform that has made it onto the Nielsen listings. Despite the fact that it has a budget of 250 million dollars, which is comparable to that of a Marvel blockbuster, its audience account for only 0.2% of the total television that is viewed in the United States. According to a report by Bloomberg, “Apple TV+ generates fewer views in a month than Netflix does in a day.” Outliers such as “Ted Lasso,” which was the most watched series on streaming in 2023, have not made their way into the company’s repertoire.

This is a dangerous wager. Apple TV+, in contrast to its rivals, was initially conceived as an exclusive service and was founded on a presumption that was fraught with danger: rather than licensing content from third parties, the entire catalog of content that it would offer would be solely comprised of Apple’s own productions. Rather than following the strategy of flooding the market with titles that has given Netflix such outstanding results, its objective was to stand out for its quality, which it has surely accomplished with series such as “Ted Lasso,” ” Separation,” ” The Morning Show,” or ” Foundation.” (This is something that it has undoubtedly accomplished).

You have star power. Apple has placed a significant amount of focus on celebrities from the film industry in order to gain the confidence of Hollywood and to make its programming more appealing. It is worth noting that Reese Witherspoon and Jennifer Aniston were both compensated one million dollars for each episode of the television show ‘The Morning Show’. Both have increased their costs by a factor of two for the fourth season. As a direct consequence of this, the upcoming season of the series will wind up costing more than fifty million dollars entirely for the cast.

There are some potential solutions. Bloomberg suggests a few potential solutions, despite the fact that Apple has not disclosed any information regarding its financial plans (although we are aware of certain aspects, such as the company’s poor financial results for the year 2024). The corporation will make an effort to increase the amount of money it pays upfront for shows and will be less reluctant to cancel shows that are not successful. As is the case with all of its rivals, it will begin licensing competing shows in order to lessen its dependency on original series. Additionally, it will require outside studios to shoulder expenses in the event that they exceed their available budget. Every form of exclusivity comes with a price, and Apple is going to begin being the one to pay it.

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