The tech giant’s foray into Hollywood has been a costly affair, with the recent box office bomb of Scarlett Johansson’s “Fly Me to the Moon” serving as a stark reminder of the challenges it faces. After shelling out a staggering $100 million for the romantic comedy, Apple has seen a paltry return, adding to a growing list of financial setbacks in its entertainment division.
Since its 2019 pivot towards original content, Apple has invested approximately $20 billion in films and TV shows, luring A-list talent like Leonardo DiCaprio, Meryl Streep, and Will Smith. However, the strategy of spending lavishly on star power and prestige projects has yet to yield substantial returns.
“Yes, it is not limited to being a technology company that sells products, it is a service company; many of them are deeply linked to the arts. The world of cinema was a natural step,” explains industry expert Víctor Abarca. The company has undeniably cultivated a certain aura around itself, but the question remains: is it translating into profits?
“The business had to be diversified beyond hardware, because the mobile market is mature, and they had to look for new sources of income. Streaming and subscriptions are an area with growth potential, and they didn’t want to be left out of the war. Having their own series would retain users, give them value and loyalty,” notes Fernando del Moral, an Apple industry analyst.
The race for streaming supremacy has seen Apple splurge on talent, with reports suggesting Jennifer Aniston and Reese Witherspoon commanded a staggering $50 million combined salary for a single season of “The Morning Show.” While this star-studded approach has undoubtedly boosted the platform’s profile, it hasn’t translated into a dominant market position.
Despite investing heavily in high-profile projects, Apple TV+ has struggled to gain significant traction. While films like Martin Scorsese’s “Killers of the Flower Moon” have garnered critical acclaim, they haven’t achieved the widespread audience appeal necessary to compete with streaming giants like Netflix.
