Apple Slashes Hollywood Strategy, Pulls Back On Streaming Ambitions As Netflix Dominates: Report
Portfolio Pulse from Anusuya Lahiri
Apple Inc (NASDAQ:AAPL) is adjusting its Hollywood strategy to cut costs on original shows after spending over $20 billion with limited success. The company plans to control project spending and cancel underperforming series faster. Apple TV+ captures only 0.2% of TV viewing in the U.S., significantly lower than competitors like Netflix Inc (NASDAQ:NFLX).
July 22, 2024 | 2:57 pm
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Apple is refining its Hollywood strategy to cut costs on original shows after spending over $20 billion with limited success. The company plans to control project spending and cancel underperforming series faster.
Apple's decision to cut costs and cancel underperforming series faster is a strategic move to make its streaming business more sustainable. However, the immediate impact on the stock price is neutral as the market may have already priced in the challenges faced by Apple TV+.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Netflix remains a dominant player in the streaming market with a 22% market share, significantly higher than Apple TV+'s 0.2%.
Netflix's strong market position compared to Apple TV+ highlights its dominance in the streaming industry. This news reinforces Netflix's competitive advantage, likely leading to a positive short-term impact on its stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50