Analytic Dreamz: Notorious Mass Effect - "APPLE TV+ CUTS COSTS AFTER PROJECTS FAILS TO CAPTURE VIEWERS"

Episode Date: August 27, 2024

Linktree: https://linktr.ee/Analytic Apple TV+'s Budget CrunchIn this segment, Analytic Dreamz dives deep into the recent budget cuts at Apple TV+. Despite investing over $20 billion in original content, the streaming service has struggled to attract a significant audience, garnering only 0.2% of U.S. TV viewership compared to Netflix's 8%.The podcast explores the reasons behind these cost-saving measures, including Apple's heavy investments in high-cost productions like Martin Scorsese and Ridley Scott's films and the WWII series "Masters of the Air." While some projects like "Ted Lasso" have found success, many others have underperformed.Analytic Dreamz analyzes Apple's strategic shift, including reduced upfront payments for new shows, quicker cancellations, delayed productions, and partnerships with studios to share financial risks. The second season of "Severance," with its soaring production costs of over $20 million per episode, serves as a prime example of Apple's need to tighten its budget.The podcast also compares Apple TV+'s performance to other streaming services, highlighting its lack of top 10 shows compared to even smaller competitors like Paramount+. Netflix's success with licensing older shows, such as Seinfeld, emphasizes the importance of a robust content library, which Apple currently lacks.Finally, Analytic Dreamz discusses the broader industry trend of cost-cutting, with major studios like Disney and Paramount also facing mounting losses. Join us as we explore the implications of Apple TV+'s budget crunch and its potential impact on the future of streaming.Privacy & Opt-Out: https://redcircle.com/privacy

Getting into the tech industry is very interesting and intriguing for the simple fact that the tech companies run the world. Now, one of the things that helps the tech companies run the world is, of course, all of the failures, because in life, you fail more than you succeed. But at the end of the day, you live to fight another day. Hopefully it makes sense. I don't know if that's exactly how the same went. what I'm saying right anyways Apple in their other venture as far as trying to get into the streaming space seemingly is not going so hot right as Apple spent over 20 billion on original content for Apple TV Plus but has only garnered a small audience now the reason

that you see the Netflix image up here which analytics Dreams video on Spotify to see the video along with the audio. But basically, the reason why I have Netflix up here is because of the simple fact that Apple TV attracts just 0.2% of the U.S. TV viewership. Yes, ladies and gentlemen, 0.2% of the U.S. TV viewership. And keep in mind, this is Apple. Most of y'all actually, as far as my listening audience, majority of the media, of y'all have an iPhone in your pocket as we speak so of course that doesn't correlate

with the other ventures as with the streaming they only have 0.2% of the u.s tv viewership i just want to keep reiterating that because of the simple fact that netflix currently has 8% so as a little bit more than 0.2 if my math um is correct you know as netflix generates way more viewership than any streaming platform, but especially Apple TV, even with them putting 20 billion into the process of creating original content for Apple TV. So why am I saying all that? Basically because Apple has said no more, no more overspending on original content because obviously the game plan isn't working. I mean, as far as investing into big name projects like, like Martin Scorsesee that's not how you say it.

Scorsate. I don't even know how I say that name. Y'all, y'all probably laughing at me. I was completely butcher that. I know, but it's all right. I'm going to keep it in there. You know what I'm saying? We're just going to act like I pronounced it right.

So y'all know who I'm talking about, right? The Martin guy. And Ridley Scott, as far as their films that they directed, they put Apple TV specifically put like $5 million into Ridley Scott and Martin films. And then you had the World War II series Masters of the Air, which Apple TV put 250 million into. So despite these enormous and ginormous investments, only a few projects have really went viral on the Apple TV platform. Some of them like Ted Lassow had made the Nielsen's top 10 streaming shows, which, of course, I don't report on Nilsson too often,

but if you want a legit and credible source as far as what is impacting the masses when it comes to streaming, Nilsson's list of the top 10 streaming shows and just their statistics overall is similar to how Billboard is when it comes to comparing the biggest artists in the world musically. So with that being stated,

if you wanted to follow a creator that's like heavily, like basically all they focus, on, I would highly suggest Grace Randolph from her YouTube channel beyond the trailer because that channel is phenomenal. So there's really nothing more to say other than Grace is just the icon in general. So with that being said, let's get back into the tech world as Apple's plan currently is to, one, of course, reduce the upfront payments for the new shows, give quicker to cancel

no quick to cancel unperforming series as far as like noticing something isn't working and they're not trying to make it work not trying to fit a square peg into a round hole I think that's how they say it

anyways and then of course they're going to delay certain products and productions for managing costs and we've seen this in other companies

when it comes to movie and TV shows. I mean, the disparity of Marvel content is simply for the fact that the overproduction simply hurt the brand. So now they're going in the way of less is more. As you've seen with Deadpool and Wolverine, literally being one of the more profitable movies of all time. And the number one R-rated movie when it comes to engagement ever. I think it passed like a Jesus movie, which is crazy that Jesus movie is art radio, but that's besides the point. So with that being said, the whole thing with the overall plan of Apple TV is to simply partner with studios so they can share financial risk, similar to when I covered

Disney Plus and HBO negotiating some type of partnership when it comes to their streaming platforms. because what these big companies are quickly realizing is that Netflix is lightning in a bottle. And catching that twice is kind of hard. As they've tried, they've copied and executed on a model that seemingly Netflix is used. But like I said with the viewership, Apple TV specifically only has zero, still only has 0.2% of the US TV viewership. with Netflix leading the pack with 8%. If you look at the other streaming services, it's not even close. Netflix is by far in a way the most popular streaming platform still to this day.

Remember when everybody was saying, oh, they should just do away with cable TV and Disney should make their own streaming platform and they'll be just like Netflix. They have Frozen. They have all type of nostalgia IP as far as if you want to watch the old Disney shows like Pinocchio or Dumbo or I don't know why those are the first two that came to my mind or Peter Pan you know just the nostalgia like factors that plays into Disney people just automatically assume they could overtake Netflix when it comes to making their own streaming platform and what they've all realized is that it's a little difficult to mimic the success that Netflix has created when it comes to the streaming platforms so of course one of the biggest things as far as the budget cuts for Apple TV is that the is that the second season of Severance saw production costs soar to over 20 million per episode prompting Apple to cut future budgets

for the show. I mean, talk about a reality check. So licensing content is one of the focal points for Apple, but now, well, it used to be one of the focal points for Apple TV, but now Apple TV, but now Apple TV plans to start licensing third-party content to broaden its catalog. So a significant shift from its original game plan as far as production-wise. And then of course, as far as the market comparison, I mean, Apple TV has fewer than top 10 shows than any other streaming platform, even behind their smaller competitors like Paramount Plus. so as far as the licensing of shows via third party i think that that's one of the ways they could

combat netflix's dominance on the streaming platform as netflix has successful licensing older shows and example they played like 500 million for signfield so that was a big increase in overall engagement just for the platform but it did cost a hefty bag as they paid 500 million for Seinfeld, you know, just a little pocket change, you know, nothing too serious. And then of course, people are now realizing that's the importance of keeping such a ginormous audience via a robust content library, which, as you can tell, with Apple TV, if you are even, I mean, by the statistics, most of you all don't even have Apple TV. But if you do, that's basically what's lacking in why people are choosing.

other competitors over Apple TV and as far as the budget that's the main thing that Apple TV is focusing on as once again they're cutting a lot of budgets and it's similar because I don't want to just pinpoint Apple it's similar to what studios like Disney HBO plus Paramount I think it was HBO Max I think that's what specifically specifically called but basically the all cutting budget It's simply for the fact that they just can't compete with Netflix no more. And it kind of just showcases how much of a lightning in a bottle of Netflix is as they still have a supreme dominance over the streaming industry.

If you want to know why I think streaming is failing, it's simply for the fact that one of the reasons people want to streaming is because the alleged sites. I'm not going to say what they are, of course. I'm not the police. But there's a lot of sites out here. that gives you up-to-day content for free. Let me just put it like that. So whenever you have cable and you're paying,

I forget, I don't even know, I haven't had cable forever, but I think it's like $20, $30 a month, maybe even more, it's probably more. And then you get a plethora of companies as far as like their shows that they license out to cable and it's all in one place. Instead of playing that monthly fee, there was this thing called the Firestick that came out.

And then that combined with the alleged sites made it to where you could watch anything you wanted for free 99. I mean, what do y'all think people are going to choose? Right. So when streaming platforms came around as far as the Netflix, taking the world by storm, all the companies was like, oh, this is the way you combat piracy in the entertainment field as far as the competitor of cable. But guess what? I'm not saying they was completely wrong because I think the thought is right. I think having to try something and then maybe failing or succeeding is pivotal to lifelong evolution. Because if you're scared to fail, then how can you ever succeed?

Right. So one of the biggest things that I want to give as far as tidbits on the overall status of the streaming era is that with the raises, the rise of, of subscription prices makes it to where the alleged sites are just going to gain even more popularity. I mean, I was watching the Joe Budden podcast, and that's like one of the biggest podcast ever. And they was out here naming certain sites that had free content as far as live sports. Let's just put it like that. And it was just naming the website. I was like, there's no way these people out here just blowing up the spot.

Like, do y'all not know that the U.S. government ever catches the owner of those streaming platforms? They are going to do ungodly things to them. That's why I'm going to leave it at. So anyways, click my tree in my bio. Let me know one of my social media is. What do you think about the whole Apple TV and it's just downfall and Apple's new plan of cutting budgets? And if you're really into the streaming platform as far as watching TV and movies, what is your favorite streaming platform and also what do you think that these companies can do to hopefully someday

compete with Netflix in their streaming world dominance?