In the first episode of the Apple TV+ “The Studio” program, Oscar's winning director Martin Scorsese, sells his script to the continental fictitious studies, just for Seth Rogen to have been told by Seth rogen that the project, about Jonestown, has been killed.
Instead, the company is quickly tracking a soul-based cash intake based on the brand: a Kool-Aid movie.
“Just return my movie and let me sell it to F -Apple, the way you should have done it first,” says a desperate scorse.
The line could virtually be an advertisement of how Apple TV+, the transmission service of the technological giant of Cupertino, has positioned itself as a creative refuge for filmmakers who try to sell bold and original ideas.
The service, which was introduced in 2019 with a Splashy event with Oprah Winfrey and Steven Spielberg, found success with comedy programs such as “Ted Lasso” and the winner of the Academy Award for the best movie “Coda”.
But the question he hung about the company was, how serious was on his Hollywood ambitions? Would it be the next great power player? Or would it become another short pocket timer? For years after they joined the company, Apple TV+ Jamie Erlicht and Zack Van Amburg leaders were persecuted by rumors that their work were in danger.
Lately, however, their efforts have focused more. He has been in a series of critical success with shows such as “Severance”, “The Studio” and “Your Friends and Neighbors.” Apple's executive president Tim Cook said in a call with investors on Thursday that Apple TV+ “has become an unmissable destination” and has published a record audience in the quarter.
Some have compared it with HBO, before Warner Bros. Discovery began to cut, developing a reputation of being willing to pay a lot for the stars and creatives of the list A.
“It has been brilliant to define its niche … and the quality of what it does is simply excellent,” said Stephen Galloway, dean of the Faculty of Film and Media Arts at the University of Chapman of the University. “The question is, is the niche big enough to justify spending?”
The Apple TV+subscriber base remains small compared to competitors, including Netflix. It lacks the deep and established libraries of Walt Disney Co. or Warner Bros. Discovery's Max, which helps customers pay every month and not change to another service. While he has good shows and films, critics say, he lacks the volume and amplitude of his competitors.
And the quality approach on quantity has its doubts. The managing director of Wedbush Securities, Daniel Iives, estimates that Apple TV+ has 57 million subscribers, which he called “disappointing.” Wall Street had hoped to see 100 million or more subscribers, he said.
Apple has “built a mansion [and] They do not have enough furniture, and that is a problem from a content perspective with Apple TV+, ”said Iives.
In addition, the technology and business news site, the information reported that Apple TV+ is losing $ 1 billion a year. The company's strategy has left some rivals scratching their heads.
“I don't understand it beyond a marketing play, but they are really intelligent people,” said Netflix Ted Sarandos Co-Cee in a March interview with Variety. “Maybe see something that doesn't.”
Apple declined to comment.
The observers noticed that transmission services can take long profitable. Nbcuniversal's real turkey is still losing money, for example.
In recent years, subscription transmission services have been under pressure from investors to produce more profits. In an industry where there is a lot of competition and Netflix has been declared winner, there is anxiety about how many platforms can survive on their own.
But Apple thinks differently about entertainment compared to its more traditional study rivals, people familiar with the company say.
Apple TV+ is only part of the company's broader strategy to grow its subscription services in Eddy Cue, which includes Apple Music, Icloud Storage and Apple News, among other options.
The category of services represented 25% of Apple's general sales of $ 391 billion in its last fiscal year. The company's largest money manufacturer remains the iPhone, which represented 51% of Apple's total income in its last fiscal year.
In their most recent quarter, services reached a revenue record of $ 26.6 billion, 12% more than a year ago, the company said.
Apple TV+ is “a small piece of all the services it provides,” said Alejandro Rojas, vice president of applied analytics with Parrot Analytics. “He wants this to increase the general experience of the brand, but without crossing a massive gap in resources and investments.”
Apple+Apple+programming strategy has adopted a friendly talent approach, tending to favor projects with renowned stars.
One of his first important bets was “The Morning Show” with Jennifer Aniston, Reese Witherspoon and Steve Carell. The drama “Your Friends & Neighbours” stars Jon Hamm from “Mad Men.” His February Survival Drama film “The Gorge” stars in Miles Teller and Anya Taylor-Joy.
One of Apple's largest films release will be made this summer with Formula 1 “F1” (with Brad Pitt), which hits the cinemas in June, even on IMAX screens. Warner Bros. is driving the theatrical release of the large -budget film, directed by Joseph Kosinski (“Top Gun: Maverick”).
Paul Dergarabedian, Senior media analyst in Comscore, hopes that “F1” play as “Top Gun: Maverick” on a racing track. Some of Apple's previous films promoted by filmmaker and full of stars fought in theaters, including “Fly Me to The Moon” and “Argylle”.
“This is a great movie for Apple,” said Dergarabedian. “I think they chose a perfect project to really amplify their cinematographic insight and filmmaker's relationships.”
The way Apple treats talent has a personalized touch, they said creatives who have worked with the company.
Tomorrow, the president of the studies, Becky Clements, said she was “always grateful” that Apple would take a chance in “Physics”, an original series starring Rose Byrne on a housewife of the eighties that fights with an eating disorder and finds force through aerobics.
“It is an original piece, which is often difficult to achieve in the market,” said Clements.
Clements gave Apple credit for supporting filmmakers and not micrognition the show, which deepened in difficult material.
Ben Silverman, an executive producer of the next Apple TV+ “Stick” series.
“I think that many platforms support their creators at this time, but they may not have the bandwidth to be as deep as Apple can in individual projects because they are simply not doing so many,” said Silverman, president and co-cement of propagation content based in the.
Not all creatives have been happy with Apple.
He launched the observers for a loop when he made a short and limited theatrical release for the “Wolfs” action action by George Clooney last year, instead of a more traditional broad release.
Director Jon Watts told Deadline that he expelled from a sequel because he was surprised by the “last minute” turn of Apple and that Apple ignored his request not to reveal that he was working on a follow -up. Apple has not publicly approached controversy.
Like other streamers, over time, Apple TV+ has made changes to help generate more income, reduce costs and increase customers. Last month, Apple reduced the price of its transmission service temporarily at $ 2.99 per month. Its base monthly rate is $ 9.99. Last year, Apple TV+ reached an agreement to sell subscriptions through Amazon.
In February, Apple TV+ captured 30% of its records through the Amazon channels, said Brendan Brady, director of strategy of the Antenna research firm. High profile releases, including the new season of “Severance” and “The Gorge” promoted registrations, he added.
“It is a combination of content that drives its acquisition, and also the opening of its distribution by attracting a new audience,” Brady said.
Apple's general business faces macroeconomic challenges, such as the Trump administration's commercial war with China.
Government officials have warned that tariffs on smartphones made in China are approaching, which would damage Apple's iPhone because many are made in the country. The increase in costs for Apple's general business could eventually squeeze other areas of the company, including Apple TV+, analysts said.
Some people who work with Apple said it is too early to judge Apple's success based on their estimated subscriber counts so far, and are placing chips in the company that is successful in the long term.
“It's about investing early and long term,” said Silverman. “I am always an entrepreneurial spirit who wants to rely early on these platforms and associations, in the hope of being able to build a relationship in front of the beach.”
