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.”

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.

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.

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.

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”).

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.

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.

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.

“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.”