The Apple TV+ streaming service debuted five years ago this month, and while it has had some success in offering original films and TV shows, it has struggled on the road to profitability. Now, a new report by Bloomberg says Apple will begin licensing its original film content to other streaming services, as part of any effort earn more money and improve the visibility of its original content.
Bloomberg‘s Lucas Shaw reports that Apple has hired Maria Ines Rodriguez, who previously worked at Disney and Comcast Corp.’s NBCUniversal, was hired by Apple earlier this year to work on content distribution, which involves licensing its original films to other streaming companies, including foreign television networks and streaming stores. However, at the moment, the Cupertino company will, at least now, not license its original TV series to any third parties.
An Apple job posting from earlier this year said the company was looking for a person to “develop and implement a global strategy to enhance revenue for Apple TV+’s award winning original content off-Apple platforms.”
While Apple remains committed to spending on content for its service, it is working to control costs in its entertainment division. New plans involve scaling back on big theatrical releases and holding tightly on the reins of the budgets for its films, keeping budgets for most films to under $100 million each.
Apple CEO Tim Cook and services head Eddy Cue have told the Apple TV+ team to lower film and series budgets as part of an effort to improve the financial performance of the service.
Apple will still release blockbusters from time to time. It’s next big flick will be the Brad Pitt-helmed F1, which is set for a June 2025 release. The film is said to be Apple most expensive film to date, with a production budget of over $300 million.
Apple recently agreed to sell its streaming service through Amazon Prime Video, with hopes of increasing the audience for the service.
Apple is following the lead of other streamers, with Warner Bros. Discovery, Paramount, Disney, and Amazon now selling and licensing their original titles to other streaming services.