The Winner Of The Streaming Wars May Have Been Revealed As Apple TV+ Is Forced To Scale Back Spending

The Winner Of The Streaming Wars May Have Been Revealed As Apple TV+ Is Forced To Scale Back Spending

With Apple TV+ forced to scale back streaming costs (joining the likes of Disney+ and Max), it appears the victor of the streaming wars has finally been decided. Find more details after the jump...

By JoshWilding - Jul 22, 2024 06:07 AM EST
Filed Under: Netflix
Source: Bloomberg

In recent years, it's felt like every major studio and network has launched its own streaming platform, a far cry from when people only really had Netflix, Prime Video, and later Disney+ to choose from.

With almost all of them boasting exclusive content, film and TV fans have been forced to be selective, only subscribing to a few platforms for affordability reasons.

Spending countless millions, if not billions on streaming has started hurting many companies' bottom lines and not even increasing subscription fees (an all too common occurrence, as we're sure you'll agree) has been enough to counter that. 

Now, Apple TV+ is the latest streamer that's been forced to scale back costs. 

According to Bloomberg, the company has joined the likes of Disney, Paramount, and Warner Bros. Discovery in cutting back to reduce streaming losses. Apple may have unlimited resources and has certainly enjoyed the critical acclaim and awards attention, but that doesn't pay the bills.

Severance season 1, for example, went over budget by $40 million, prompting Apple to warn the production team that if costs aren't cut moving forward, there will be no season 3. While the company isn't giving up on Apple TV+, like Disney, it seems to have realised throwing cash at the platform to beat Netflix isn't paying off.

As a result, that platform has essentially become the default winner of the streaming wars.

After extending its leave over other streaming services in the last quarter, Netflix now has 277.7 million subscribers and reaches more than 600 million people around the world. Crucially, profits in that time have risen by 44% from 2023. 

"There is a growing sense in Hollywood and on Wall Street that Netflix has built an insurmountable lead," the report explains. "Management doesn’t see things this way considering the company only accounts for about 8% of TV viewership in the US. While that is more than twice the next-closest paid streaming service, it is a little behind YouTube."

"Whether or not you believe Netflix has 'won' the streaming wars, the company feels secure enough in its position to curb spending. Management is looking to restrain budgets for shows and push down the premiums paid to producers."

"Netflix says it will increase its budget in the future, and there are always projects for which Netflix will overpay. But the company will increase its spending at a lower pace than its sales. In other words, profits will keep going up," the site adds. 

So, while Netflix may not be the official winner, five years after Disney+ and Apple TV+ launched, it's become clear that they can't compete with the rival streamer on the level they initially hoped. As for the likes of Max and Peacock, they're ultimately a non-factor. 

One thing we can safely say, though, is that the streaming bubble has finally burst...

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FireandBlood
FireandBlood - 7/22/2024, 6:56 AM
They flooded the market with subpar content and thought consumers would just eat it up, and they did for awhile there, but like all things, people wise up eventually.
thewanderer
thewanderer - 7/22/2024, 9:33 AM
@FireandBlood - AppleTV?


I’d argue AppleTV has the best lineup of content of any streamer.
SonOfAGif
SonOfAGif - 7/22/2024, 11:34 AM
@FireandBlood - As of right now in my honest opinion, Amazon has delivered back to back high quality content followed by Max. Netflix has their hits but they release so many garbage entries and then cancel good shows that it's not worth the subscription.
FireandBlood
FireandBlood - 7/22/2024, 11:54 AM
@SonOfAGif - I haven’t subscribed to Netflix in years but they appeal to the most common denominator with their catalogue which is mostly comprised of garbage but yeah, that’s them.
The1st
The1st - 7/22/2024, 12:50 PM
@thewanderer - Dark Matter was so refreshing in how they handled the multiverse angle.
Moriakum
Moriakum - 7/22/2024, 6:58 AM
Apple TV + Infuse. The best streaming I have.

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tylerzero
tylerzero - 7/22/2024, 7:01 AM
@Moriakum -

Schmirate Schmay for me, matey.
theBlackSquare
theBlackSquare - 7/22/2024, 7:27 AM
I'm always surprised when people don't have apple tv. There's so much good stuff on there.
bkmeijer1
bkmeijer1 - 7/22/2024, 7:31 AM
@theBlackSquare - exactly. And there are so many ways to get it for free. They're giving away trials quite a lot thay I'm mot surprised they have a money shortage
The1st
The1st - 7/22/2024, 12:53 PM
@bkmeijer1 - Well, I'm...savy savi.

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Spidey91
Spidey91 - 7/22/2024, 7:30 AM
Netflix won the war 10 years ago
FireandBlood
FireandBlood - 7/22/2024, 7:59 AM
@Spidey91 - Netflix revolutionised this shit. It’s like expecting New Balance to supplant Nike because they’ve caught a boost. Not gonna happen.
VoiceofReason
VoiceofReason - 7/22/2024, 8:02 AM
Hasn't Netflix never technically turned a profit?
Blergh
Blergh - 7/22/2024, 8:46 AM
@VoiceofReason - we'll never know for sure but from what has been reported about NFX it's a company built like a house of cards, new injections of investors keep it afloat
VoiceofReason
VoiceofReason - 7/22/2024, 10:02 AM
@Blergh - Was that a purposeful House of Cards pun? lol
Blergh
Blergh - 7/22/2024, 1:16 PM
@VoiceofReason - not necessarily intended lol.

From what I heard NFX operates at a loss, accumulating as much debt until the next investor injection pulls them out and continue. Their bread and butter is investing their budgets into their subsidiaries and studios. It’s what most other studios do, they rent their own stages and services to their productions and thus keep an internal cashflow. But that way they inject cash into these assets that can then be rented out to other productions outside of the NFX bubble, that’s where the profit should come from.

Do they make a profit? We don’t know. Is it money laundering? We don’t know. But does NFX have a sizable subscriber base that has become loyal enough to pay for a plan that involves ads? Absolutely. One that is loyal enough to pay premium prices for ad free content? Probably.

Amazon operated at a loss until the early 2010s and still refilled stock at a loos until the end of 2020. It’s the loyalty, the willingness to overpay because “you already have Amazon Prime” for a product you could get at 10 bucks cheaper elsewhere.
Operating at a loss in exchange of loyalty and trust is a concept that worked out well for Amazon, besides that it got too big to even be governed by legal bodies.
VoiceofReason
VoiceofReason - 7/28/2024, 6:33 PM
@Blergh - Now that was a reply sir.
MadThanos
MadThanos - 7/22/2024, 8:04 AM
Sorry, but Defending Jacob and Presumably Innocent are better than anything but Stranger Things that Netflix has ever released.
Shivermetimbers
Shivermetimbers - 7/22/2024, 10:54 AM
@MadThanos - Presumed innocent has been so damn good! Better than this season of House of the Dragon has been, thats for sure.
TheUnworthyThor
TheUnworthyThor - 7/22/2024, 8:30 AM
8% sure doesn’t feel like winning. It just seems to illustrate just how truly divided the attention is of general audiences.
Razorface1
Razorface1 - 7/22/2024, 8:38 AM
Apple probably should have invested on actually having interesting stuff on their platform.
Reeds2Much
Reeds2Much - 7/22/2024, 8:46 AM
Severance [...] if costs aren't cut moving forward, there will be no season 3.
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dragon316
dragon316 - 7/22/2024, 9:01 AM
Glad streaming is going possibly die out glad this video I watched yesterday was true what he said ?feature=shared
LeBronStan
LeBronStan - 7/22/2024, 9:13 AM
It'll be interesting to see how the NFL Christmas games go on Netflix. If Netflix somehow is able to gain primetime games (outside of thursday night), or even stream games that aren't primetime, then it'll be pretty much over lol.
Blergh
Blergh - 7/22/2024, 9:17 AM
Apple tried to pull in viewers with quality content, Disney relied on their franchise power, NFX simply kept going the way it was. Meanwhile HBO Max could have become a hit if Zaslav let it have a chance.
marvel72
marvel72 - 7/22/2024, 9:35 AM
I have...

Netflix
Prime
Disney Plus
Now TV
Shudder
NJPWWORLD
Crunchy Roll
PartyKiller
PartyKiller - 7/22/2024, 9:41 AM
In the end, it will come down to Netflix VS Disney.
X75
X75 - 7/22/2024, 10:47 AM
When studios stop licensing to Netflix it'll be over for them soon. Among all the content they make themselves there are not a lot of great movies/shows.
Shivermetimbers
Shivermetimbers - 7/22/2024, 10:56 AM
@X75 - There have been some Netflix originals that I have really liked, but they are a little few and far between.
X75
X75 - 7/22/2024, 11:01 AM
@Shivermetimbers - Exactly. I loved the show Dark, but can't recall 1 Netflix original movie that was really great.
JDL
JDL - 7/22/2024, 5:25 PM
@X75 - They stopped several years ago. It didn't work. So about a year or so ago they started licensing to Netflix again but at higher rates. Sort of game over unless production costs rise to a level Netflix can't exist at and the others (barely) can.
Godzilla2000Zer
Godzilla2000Zer - 7/22/2024, 11:00 AM
Prehistoric Planet
thobie1
thobie1 - 7/22/2024, 3:37 PM
I'm not sure what they're spending money on with Severance. I love that show, can't wait for season 2, but you don't have any CGI dragons or superheroes or explosions so I don't know what's expensive there. While I have favorite shows on other services, I will say that Netflix is the one service that consistently has stuff I'd watch and not run out of. No shock they are winning I guess.

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