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Apple has made splashy bets in Hollywood. Are they paying off?

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Apple has made splashy bets in Hollywood. Are they paying off?

In the first episode of the Apple TV+ show “The Studio,” Oscar-winning director Martin Scorsese sells his script to the fictional Continental Studios, only to be told later by a studio chief played by Seth Rogen that the project, about Jonestown, has been killed.

Instead, the company is fast-tracking a soulless brand-based cash grab: a Kool-Aid movie.

“Just give me back my movie and let me go sell it to f— Apple, the way I should have done it in the first place,” a despairing Scorsese says.

The line could practically be an ad for how Apple TV+, the Cupertino tech giant’s streaming service, has positioned itself as a creative haven for filmmakers trying to sell bold, original ideas.

The service, which was introduced in 2019 with a splashy event featuring Oprah Winfrey and Steven Spielberg, found success with comedy shows like “Ted Lasso” and 2022 best picture Academy Award winner “CODA.”

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But the question hanging over the company was, just how serious was it about its Hollywood ambitions? Would it be the next big power player? Or would it become just another deep-pocketed short-timer? For years after they joined the company, Apple TV+ leaders Jamie Erlicht and Zack Van Amburg were dogged by rumors that their jobs were in jeopardy.

Lately though, its efforts have come more into focus. It’s been on a run of critical success with shows such as “Severance,” “The Studio” and “Your Friends & Neighbors.” Apple Chief Executive Tim Cook said in a call with investors on Thursday that Apple TV+ “has become a must-see destination” and posted record viewership in the quarter.

Some have compared it to HBO — before Warner Bros. Discovery began making cuts — developing a reputation for being willing to pay big for A-list stars and creatives.

“It’s been brilliant at defining its niche … and the quality of what it does is simply superb,” said Stephen Galloway, dean of Chapman University’s Dodge College of Film and Media Arts. “The question is, is the niche big enough to justify the expense?”

Apple TV+’s subscriber base remains small compared to competitors, including Netflix. It lacks the deep, established libraries of Walt Disney Co. or Warner Bros. Discovery’s Max, which helps keep customers paying every month and not switching to another service. While it has good shows and movies, critics say, it lacks the volume and breadth of its competitors.

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And the quality over quantity approach has its doubters. Wedbush Securities managing director Daniel Ives estimates Apple TV+ has 57 million subscribers, which he called “disappointing.” Wall Street had hoped to see 100 million or more subscribers by now, he said.

Apple has “built a mansion [and] they don’t have enough furniture, and that’s a problem from a content perspective with Apple TV+,” Ives said.

Further, tech and business news site the Information reported that Apple TV+ is losing $1 billion a year. The company’s strategy has left some rivals scratching their heads.

“I don’t understand it beyond a marketing play, but they’re really smart people,” said Netflix co-CEO Ted Sarandos in a March interview with Variety. “Maybe they see something we don’t.”

Apple declined to comment.

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Observers noted that it can take a long time for streaming services to become profitable. NBCUniversal’s Peacock is still losing money, for example.

In recent years, subscription streaming services have been under pressure by investors to produce more profit. In an industry where there’s a lot of competition and Netflix has been declared the winner, there’s anxiety about how many platforms can survive on their own.

But Apple thinks differently about entertainment compared to its more traditional studio rivals, people familiar with the company say.

Apple TV+ is just one part of the company’s larger strategy to grow its subscription services business under Eddy Cue, which includes Apple Music, iCloud storage and Apple News, among other options.

The services category represented 25% of Apple’s overall sales of $391 billion in its last fiscal year. The company’s largest money maker remains the iPhone, which represented 51% of Apple’s total revenues in its last fiscal year.

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In its most recent quarter, services reached a revenue record of $26.6 billion, up 12% from a year ago, the company said.

Apple TV+ is “a small piece of all the services that you provide,” said Alejandro Rojas, vice president of applied analytics with Parrot Analytics. “You want this to add to the overall brand experience, but without also crossing a massive gap in resources and investments.”

Apple TV+’s programming strategy has taken a talent-friendly approach, tending to favor projects with big-name stars.

One of its early major bets was “The Morning Show” with Jennifer Aniston, Reese Witherspoon and Steve Carell. Drama “Your Friends & Neighbors” stars Jon Hamm from “Mad Men.” Its February survival drama film “The Gorge” stars Miles Teller and Anya Taylor-Joy.

One of Apple’s biggest movie releases will happen this summer with Formula 1 film “F1” (featuring Brad Pitt), which hits theaters in June, including on Imax screens. Warner Bros. is handling the theatrical release for the big-budget movie, directed by Joseph Kosinski (“Top Gun: Maverick”).

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Paul Dergarabedian, senior media analyst at Comscore, hopes “F1” will play like “Top Gun: Maverick” on a racetrack. Some of Apple’s previous filmmaker-driven, star-studded movies struggled at theaters, including “Fly Me to the Moon” and “Argylle.”

“This is a huge movie for Apple,” Dergarabedian said. “I think they picked a perfect project to really amplify their filmmaking acumen and their filmmaker relationships.”

The way Apple treats talent has a personalized touch, said creatives who have worked with the company.

Tomorrow Studios president Becky Clements said she was “forever grateful” that Apple took a shot on “Physical,” an original series starring Rose Byrne about a 1980s housewife who struggles with an eating disorder and finds strength through aerobics.

“It’s an original piece, which is often a difficult thing to pull off in the marketplace,” Clements said.

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Clements credited Apple with supporting the filmmakers and not micromanaging the show, which delved into difficult material.

Ben Silverman, an executive producer on upcoming Apple TV+ series “Stick” (starring Owen Wilson), said the show’s budget allowed for traveling to North Carolina for filming, where prominent golf commentators Trevor Immelman and Jim Nantz were located during the PGA Tour.

“I think a lot of platforms are supportive of their creators right now, but they may not have the bandwidth to go as deep as Apple can on individual projects because they’re just not doing as many,” said Silverman, chairman and co-CEO of L.A.-based Propagate Content.

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Not all creatives have been happy with Apple.

It threw observers for a loop when it did a short and limited theatrical release for last year’s Brad Pitt and George Clooney action-comedy movie “Wolfs,” instead of a more traditional wide release.

Director Jon Watts told Deadline he backed out of a sequel because he was surprised by Apple’s “last minute” shift and that Apple ignored his request to not reveal that he was working on a follow-up. Apple has not addressed the controversy publicly.

Like other streamers, over time, Apple TV+ has made changes to help generate more revenue, cut costs and increase customers. Last month, Apple cut the price of its streaming service temporarily to $2.99 a month. Its base monthly fee is $9.99. Last year, Apple TV+ reached a deal to sell subscriptions through Amazon.

In February, Apple TV+ captured 30% of its sign-ups via Amazon Channels, said Brendan Brady, director of strategy at research firm Antenna. High-profile releases including the new “Severance” season and “The Gorge” drove sign-ups, he added.

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“It’s a combination of content driving their acquisition, and also that opening up of their distribution attracting a new audience,” Brady said.

Apple’s overall business faces macroeconomic challenges, such as the Trump administration’s trade war with China.

Government officials have warned that tariffs on smartphones made in China are coming — which would harm Apple’s iPhone because many are made in the country. Increased costs to Apple’s overall business could eventually squeeze other areas of the company including Apple TV+, analysts said.

Some people who work with Apple said it’s too early to judge Apple’s success based on its estimated subscriber counts so far, and they’re placing chips on the venture succeeding in the long run.

“It’s about investing early and long-term,” Silverman said. “I’m always an entrepreneurial spirit who wants to lean in early to these platforms and partnerships, hoping that I can build a beachfront relationship.”

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Rent-hike ban to protect fire victims ends despite gouging concerns

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Rent-hike ban to protect fire victims ends despite gouging concerns

A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.

The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.

The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.

“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”

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Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.

It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.

Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.

“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.

Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.

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“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”

Mitchell did not immediately respond to a request for comment.

There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.

In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.

In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.

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A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”

“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.

Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.

L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.

Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.

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Newsom defended the price-gouging protections shortly after they went into effect.

“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”

The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.

“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.

Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.

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Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.

The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.

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Read Nick Bilton’s Letter to Scott Pelley

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Read Nick Bilton’s Letter to Scott Pelley

Dear Mr. Pelley:

I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.

Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.

Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.

Sincerely,

Nick Bilton

Executive Producer, 60 Minutes

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Aspiration co-founder sentenced to 14 years for fraud

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Aspiration co-founder sentenced to 14 years for fraud

The co-founder of Aspiration, Joseph Sanberg, was sentenced to 14 years in prison on Monday after defrauding investors and lenders of over $248 million.

The startup, an eco-friendly digital banking company boasting fossil fuel-free investments, carbon offsets for gas purchases, and a debit card with cash-back benefits for shopping at clean companies, was founded by Sanberg and Andrei Cherny. Cherny left the company in 2022 and has not been charged.

Sanberg, an Orange County native, pleaded guilty to wire fraud in October after being arrested in March last year. Aspiration subsequently filed for bankruptcy and liquidated all of its assets by July.

Sanberg and venture capitalist Ibrahim AlHusseini, who also faces charges, together forged a series of bank statements in order to obtain loans. From 2020 to 2021, the pair forged AlHusseini’s bank statements to show millions of dollars in assets in order to obtain millions of dollars from lenders.

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Additionally, they forged a letter from their audit committee stating that $250 million in funds were available, when in reality Aspiration had less than $1 million. The amount of loans defrauded exceeded $248 million.

In 2021, Sanberg artificially inflated Aspiration’s 2021 revenue by $44 million by recruiting 27 fake customers to sign letters of intent pledging tens of thousands of dollars per month for tree planting services. Sanberg himself funded the contracts and used the inflated revenue numbers to obtain more loans.

The charges sparked an NBA investigation into salary cap allegations due to Aspiration’s connections with Clippers owner Steve Ballmer.

Ballmer personally invested $60 million in Aspiration, all of which was lost. He is now the target of a civil lawsuit alleging his participation in the scheme. Ballmer denies the allegations.

The team announced a $300-million sponsorship deal with Aspiration, and Clippers player Kawhi Leonard signed a four-year, $28-million marketing contract with the company, which reportedly performed no duties. The issue has raised concerns about how players are circumventing the NBA’s salary cap.

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The team lost the $300-million sponsorship deal and an additional $20 million paid for carbon offset purchases.

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