Apple tries to rein in Hollywood spending after years of losses
bloomberg.com
bloomberg.com
For comparison, Netflix spent $17B in 2022, and $13B in 2023 (it was lower due to strikes). Disney spent $33B on content in 2022. Meanwhile, Apple spent $7B in 2022. (All numbers from Google top results).
So Apple's still spending significantly less than main "competitors", of course.
It's extremely weird for an article to give an all-time spending figure and then call it "unsustainable", when obviously sustainability depends entirely on spending per year compared with revenue per year, and this article doesn't even talk about the revenue side at all (Apple TV+ costs $9.99/mo. standalone.)
It's also hard to define "sustainability" when it's not even clear that Apple's goal is to make a profit directly, but may be to take a loss that is less than the perceived marketing value that this adds to the Apple aura/brand.
EDIT: my comment is referring to the original URL for this post which was https://wccftech.com/apple-tv-expenditure-crossed-20-billion... , not the Bloomberg article which the URL has since been changed to
A few stars, directors, producers or etc can determine the success of a production when there's full competition - maybe, everything is uncertain. The gist of the discussion is that Neflix is will to pay less by virtue of having become such a monopoly it can just dictate the winners. But as the parent says, what's happening with Apple is likely much more opaque.
Apple TV+ isn't the only way to monetize the projects either. One hopes at least some of these will come out on disc, and many of them are likely to show up on other streaming and perhaps even broadcast. Media has a long tail of revenue, although it's often unclear who has rights to that revenue.
It needs to for Oscar contention though but I am sure some money can be made.
Streaming fatigue is real. All streaming services are feeling this. And that's why so much of HBO content re-appearing on Netflix. Disney, Paramount will follow suit in search for money.
> when it's not even clear that Apple's goal is to make a profit directly,
I mean that sounds like calling We can't make money as `We don't want to make money*
When the industry finally figured out Netflix was eating their lunch it was too late to catch up.
Content wise they could absolutely be competed with if you built good content consistently, it’s just most players in the game don’t seem bothered to do that and want to get to where Netflix is today (content wasteland resting on past numbers) without the golden age of Netflix.
>sustainability.......but may be to take a loss
I dont record any single feature or product that Apple provides and uses a loss leader. You may get freemium type of services that is iCloud but even that is accounted for in their book in every single Apple products sales. Their culture has always been paid for the product or services. It is very rarely a loss.
But I have been saying for now close to a decade the whole point of Apple Music, Apple TV+ etc were to increase their Services Revenue while diluting down their Services Profits margin since a lot of these Services are razor thin margin, but for App Store and Google Search placement are both at 90%+ Gross. By combining them together and bundling these products as Apple One they have managed to substantially increase their subscription base to 1 billion+.
The only problem is both Google Search Placement deal and App Store revenue are under heavy attack and scrutiny by officials and politicians.
Sure, I think Apple TV+ might be their only product like this. In a lot of business analysis of streamers, Apple and Amazon are the two that are widely believed they won't get shut down (or sold/merged) even if they never make a profit at all -- because of the marketing value to Apple, and the Prime stickiness value for Amazon.
So just because Apple has never done it before, doesn't mean they aren't doing it now. Apple TV+ is unique in a lot of ways for Apple. The rest of Services, and Apple TV+, seem to have such different business models that it doesn't make a lot of sense to combine them when analyzing Apple's strategies (even if they are combined in quarterly reports).
I hope I'm wrong and that Apple sees value in producing wonderful, niche TV. But at the same time that's not really Apple's ethos.
Sometimes less is more.
I've read the "Second Foundation trilogy" written by other renowned sci-fi authors, as well as the later Foundation books written by Asimov. They had typical main characters with hero's arcs driving the story. I much preferred the originals.
Especially the first book. It's refreshing to read a story where events occur because of unstoppable historical forces instead of the superhuman actions of a hero.
If I wanted a story about a hero, I could read...well...just about any other book ever written.
Generally that takes the form of characters who experience things — ideally growing or changing in response, although many genres and formats don’t require that part. It’s unnecessary since part of the medium of television, unlike the novel, is people putting on a show to entertain you which is different from reading, an inherently more-individual experience. Part of what TV is selling is a group of people to hang out with every week. Generally.
Which is not to say always — shows like Twilight Zone and Tales from the Crypt proved the anthology format has a wide audience. But they had the advantage of a brand new paradigm each week, which creates a relationship with the show itself (but even TZ allowed the audience Serling).
Foundation def be done as anthology style episodes with some crossovers/overlap, but again practical realities make it difficult to guarantee narratively-necessary access to actors due to contract and scheduling factors, and you have the issue of both too big for standard structure and “not big enough” for a true anthology at its core. Not saying it couldn’t work it’d just be more difficult, which is not a quality that makes studios likely to invest.
Either way though, there are issues with the adaptation that are quite distinct from eschewing the episodic arc of the original trilogy. It's full of spiritual woo for one, which is entirely antithetical to Azimov's vision. It's also more than fond of sadistic violence. Azimov's whole method as a writer was to have smart characters solve difficult problems intellectually. 'Violence is the last resort of the incompetent' after all.
That recurrence that wouldn’t be possible for a Foundation series without suggesting characters themselves are repeating through time, which would seem to lean even harder into woo, which I’m sensing is not your bag.
On goodreads Foundation (which IMHO is not even among the best Asimov works) is rated noticeably higher than The Three Body Problem, and as a reader I feel it is justified.
If you take into account the novelty factor, it will probably sink to the average rating of mediocrity in a couple of decades.
Re: A hero's journey, hard disagree. There are numerous heroes in the original foundation series, and the later books have one very well drawn one - Golan Trevize, in addition to a host of memorable characters.
Rather put the money into an Apple Robot. The robot needs to have Eddye Cue eyes and that constant grin.
And there are extra characters who are not in the books at all.
So I'm pretty sure they're adapting heavily just to avoid the second and third book things.
It's a reddit link but some details in the comments and the original source did seem a bit tabloidy.
So my hope would be they would realize that, lean into it, and cut their other experiments or just not do movies as much.
I know for me anytime I see a new science fiction show on Apple TV I feel like it is at least worth checking out the first couple episodes, and I have not been upset yet.
Yes, Apple generates LOTS of revenue overall, but that doesn't justify bleeding cash on a business line that hasn't produced material returns and has no significant positive trajectory in sight.
It's clear that Apple saw this as their Prime Video bet on their services strategy, but that hasn't worked out. Just look at AppleTV+ market share. It's hilariously miniscule.
TV+ is nice value add on their bundled subscription package so may be driving more people to opt for that. I know it was a major factor in my decision and now I am playing Apple Arcade games and use Apple Music as my primary music service.
Operating TV+ as a halo or loss leader product to get people to try other services within the ecosystem could be a winning strategy for them. Also likely drives some hardware sales.
They have some of the highest sales for high value products in the world.
What the goal of this was obviously to scoop $10 more cream a month from a % of those huge sales numbers.
“Loss Leader” theory makes no sense next to Apples financial and sales reality.
The article is implying that TV+ is losing money. I don’t know that it is but my point is that for Apple it is likely still worth keeping and growing the service even if they are losing money on it at the moment.
AppleTV exists to make existing mega fans happy the ecosystem extends to their TV not to sell things.
I actually haven't seen any numbers on their current marketshare, but I'll give you that they aren't anywhere near their competitors. I don't think the problem is that they're spending too much money.
And how much did it cost to make that movie[0]?
"Budget $200–215 million
Box office $157 million "
[0]https://en.wikipedia.org/wiki/Killers_of_the_Flower_Moon_(fi...
You typically would double it i.e. about $400 million needed to break even.
It would be considered a flop if it was just a theatrical release.
(wouldn't even make sense to, they have an Android app)
Just getting Android users to have a daily reminder of "Apple makes something that is high quality and I enjoy" could be enough to influence future purchasing decisions even if those people wouldn't explicitly consider their enjoyment of Apple TV+ to be the reason they eventually bought an Apple device.
(I have no reason to specifically believe that Apple TV+ is ROI-positive in this way, just pointing out that non-conversion brand awareness marketing is a huge part of the marketing world, with often very positive results.)
I'm wondering if at some point Apple doesn't look at how much engineering effort goes into all those useless apps for a service that is bleeding money and decides to reassign the workforce. Money is basically infinite for Apple, but good engineers are its most valuable resource.
On the other hand, that brand boost had an estimated value associated with it, and it’s wasting money to overpay for it, hence “Company Executive Taking Various Measures To Bring Costs Down Considerably” — only worth running a loss leader if it’s overall profitable.
To me, it sure feels like the latter.
Apple spending $20 billion to pick up all this prestige TV and Film, is kind of a great deal, when compared to say, the $43 billion Discovery just paid for Warner, just to kill half of it (and then lose another $7 billon on it over the past 2-3 years)
When I had a mail-by-DVD Netflix account, I don't think my queue ever dropped below 20. I have a sizeable watchlist / saved list on every streaming service I have used, and it also never goes down to zero.
They are also doing that traditional HBO thing where they get AAA movies for a limited time and then poof.
I'm hoping they continue to update the UI to make it easier to find new shows and viewing history.
It was a decent show though. But it wouldn't make me subscribe. That would take a lot more.
Also extra funny for Apple as their projected attitude is that they are always top tier with unlimited funds.
Apple can sustain the revenue loss as long as it has to stomach to do so and as long as it can justify it for other business reasons - like maybe making the bundle more attractive.
1. The website is ass. i’ve attempted nervous times to sign into my gaming PC before giving up and using my Apple device. Great for my Apple device but ass if I ever want to watch it on my gaming PC , meaning i’m consuming less media on it. This makes it uniquely terrible for its other goal of folks purchasing their media on there since it’s linked with Apple TV. Idiotic for a streaming service.
2. There’s no consistent release of shows to watch all year round. Netflix imo is the only services that releases stuff every month. for other services this is no issue since they have a backlog of content for consumers to consume but Apple TV+ does not have this pleasure imo. for a service that relies on subscriptions for its revenue, it’s the worst to plead for its case.
3. No watch history. Whenever I hear a new show recommendation I immediately open the tv app and add it to my up next. The Tv’s app’s ability to connect to various streaming serves makes it the nexus for most media. Why the hell does it not support the opposing feature of saving the history of what just watched? It should be so easy for it to add on a Letterboxd like feature from there.
Today MLS has the problem that people think “American soccer sucks” and won’t give it a chance. I caught a game in person because I was interested in the state of American soccer and between the game and the fan experience I had a great time.
A sport that has room to grow has to be easy for people to catch a game who aren’t committed to subscribing to it. They can win people over if they can catch an occasional game for free but if it is behind a paywall 100% of the time it’s going to stay obscure. NBC runs a free Premier League game every Saturday and if you want more you can get it as part of a reasonably priced Peacock subscriptions. The deal Apple has with MLS might be a good deal for Apple but I don’t think it’s good for the sport.
Did you try to stream it before Apple got the rights to MLS games? About 10 years ago MLS had an all-in-one streaming platform called MLS LIVE. Minor local blackouts, but other than that its the one stop shop.
Then they shut that down and you have to follow a flow chart on how to watch anything. Is the game "local"? Are you "local"? Is it a "big" game that is streamed nationally? What does the magic 8 ball say for which local station has the rights to the broadcast? ESPN+ had some of the games but no where near all. Pirating the game was about 10x easier, as you just time in "free MLS stream".
Apple TV is a single place to watch the games. No blackouts. No ouija board to figure out how to watch it. So much easier than pirating, the quality is good, and I can watch it where ever I want.
Whether or not the deal was good for the MLS organization monetarily, I have no idea. But for consumers it has been really great in my opinion.
Coincidentally, my free trial ends tomorrow, and I will not be renewing.
It's been solid for me, to the point that I subscribe to other services through the built-in channels feature in order to be able to avoid generally worse streaming apps (like Paramount+) but I always watch using Apple stuff.
Apple TV is your physical device (or software loaded on your TV).
On my WebOS TV's, AppleTV works exceptionally well, only Hulu and Netflix beat it in terms of reliability.
Paramount+ on the other hand. Total POS.
Don't struggle through a slow old Roku.
And, of course, I'm not really pitching Roku, if you've got another solution or want to switch companies, that's fine too. I'm just saying, anyone reading this who has a Roku a few generations back and having simply never thought about what to do about it, have a look at replacing it. Or any other streaming box that is generally choking. I remember getting into TiVos when they cost the modern equivalent of about $350-$400 and I still haven't fully internalized that streaming boxes can cost, well, more than "a coffee at starbucks" but at this point "less than a full meal for my family at a fast food joint".
They're not the cheapest thing out there, but you get a lot of muscle (and longevity) for your money.
Aside from that, having a little extra power available can be nice for being able to smoothly play back video formats that the hardware doesn’t have acceleration for, obviating need for transcoding (via Plex or similar).
I owned the 1st gen (used) and 3rd gen. Terrible investments (imo).
Only Netflix appears to work consistently well on all my devices. Kudos to that team.
jFYI, lots of other services also have no-ads plans. E.g. Netflix.
Their bitrate is roughly double the other popular services.
For example a 1 hour 4K TV show is about 9-11GB on AppleTV+. On Disney and Netflix and Amazon, it's about 4-6GB. On HBO MAX it's about 7-9GB.
The audio is the same across them all more or less. Most using 768K DD+ with Atmos these days.
Just curious: Is this comparing the same codec? x264 vs AV1 will have a massively different bitrate. So, if a service is using AV1, that could actually be better for the consumer.
How is this so hard to get right?
I have a Apple TV 4K (and Roku doesn't do much better, to be clear), connected to a Marantz Cinema 70s (8K, Dolby Atmos, 7.2), and little to nothing that is done either on the receiver, ATV, or playback source does anything to alleviate the huge frustration that is "being able to hear dialog cleanly without rupturing a speaker, eardrum or both when there's an explosion".
As for Roku... I have the Roku Ultra hooked up to the same... but, since Plex released an ATV app, I don't really need it...
However, you’re in luck. The center channel is reserved almost exclusively for the dialogue track in film and TV, so you should be able to turn it up and hear it more clearly without affecting anything else.
Well of course, it's nothing indeed -- they're simply passing through the audio as it was originally mastered, as they're meant to.
All your equipment is doing it right, assuming it's all configured correctly. And I assume it's not that the Roku "doesn't do much better", but does it exactly and precisely the same.
If you have an issue, it's presumably with the mastering standards, not with any of your equipment. Which is a whole other conversation around relative decibel levels in mixing, but it has nothing to do with technology.
Netflix 4K subscription will get you high bitrates, even for 1080p. I'm surprised MAX is that high; it used to be the worst.
I have a Pixel 6.
You can watch online then
So, good luck with that.