As Netflix’s winning streak in the “streaming wars” continues, Apple TV+ is looking to reign in their pursuit of passion projects. The service has become known for extravagant projects and often appeared to be the exception to Hollywood’s larger trend toward tighter budgets. But now the company is changing their tune. Meanwhile, Netflix remains wary of budget increases and enters the bond market to stay on top. Kim Masters and Bloomberg’s Lucas Shaw compare approaches.
A smaller bite of the Apple? While other streaming services have been leaning into cost cutting measures, Apple TV+ kept spending. The recent World War II period drama Masters of the Air alone boasted a $250 million budget. But with Apple’s smaller percentage of viewership as compared to other services, it’s not surprising to see them rethinking their strategy. “It seems as though Apple finally want[s] to run its streaming service like a business,” says Shaw.
Severance pay? One particularly curious case is that of Apple TV+’s (relative) breakout hit, Severance. Season one of the buzzy show garnered rave reviews, 14 Emmy nominations, and perhaps most crucially a community of online theorizers which seemed to grow organically week to week during the series’ initial run. Severance season two is set to begin airing on Jan. 17, 2025 and with a reported budget of $20 million per episode, the twisty workplace dramedy has become one of the most expensive shows on TV. Ben Stiller remains one of the biggest names behind the series, serving as an executive producer and frequent director of individual episodes. The production also experienced significant delays due to last year’s actor and writer strikes. All of these factors likely contributed to the considerable price tag. “It's critically beloved and as you know, a contender for awards,” Shaw relays. “They're very proud of the show creatively, but the audience isn't there.”
Up next in the bond market, Netflix? Though Netflix consistently comes out on top in the “streaming wars,” the service is looking to raise money and remain vigilant with a low budget model. A few years back, the service took on debt to fund their programming and secure their status as a leader in the streaming space. Now, the company is in the bond market ahead of debt coming due. “They are not immune to the pressures across the industry,” says Shaw.