iTunes and chill? Apple to take on Netflix with $1 billion worth of original content TV shows

Apple has taken note of the cordcutting trend, and the runaway success that Netflix, HBO, Hulu and other streamers that produce original content have become, and will be producing no less than ten new shows and other original content in the next year or so, reports the Wall Street Journal today. With an installed base of more than a billion potential viewers who are used to paying for media through iTunes, Apple could immediately become the next big thing on the trendy "what to watch" block.

Unlike Netflix, however, whose stratospheric rise is fueled by copious amounts of debt (so far $20 billion and counting), Apple will apparently take a more measured approach, earmarking "just" a billion for testing the original content streaming waters. That's not to say that the team from Cupertino is not ambitious, though - Eddy Cue is on record saying that they want to acquire or produce shows on the level of Game of Thrones, and, knowing Apple's money, they could very well do so. For comparison, HBO spent two billion on original programming last year, and Apple could easily double or triple the amount invested if the shoe fits. 

Still, Netflix is way ahead with $6 billion spent on own shows and content last year, though there is a lot of fluff in it, while Apple usually takes a more targeted approach when it comes to quality, regardless of what one might think about shows like Planet of the Apps. On the other hand, subscribing to Netflix or HBO Go via the App Store nets Apple 15% each time, so it has to be careful not to antagonize those streamers too much, now that its revenue from various digital services is skyrocketing, compared to hardware sales. Apple recently poached two execs from Sony Entertainment, too, so it finally seems bent on building a proper media empire.

source: WSJ



1. RebelwithoutaClue unregistered

I wonder if they'll maintain the same prudish attitude towards shows as they do to apps in their Appstore.

9. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Well the author goes out of his way to try and get your attention away from Apple's previous offerings, but it is difficult to do so when the steaming pile known as "planet of the apps" is the only previous effort.

2. poptart574

Posts: 223; Member since: Feb 29, 2016

I wonder if this streaming service will be available only on their own hardware.

10. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Oh! You mean Apple has services outside of their own ecosystem? What? I thought the whole point of having exclusive content is to lock up... I mean sign up more iOS customers.

3. Atrixboyyy

Posts: 607; Member since: Nov 03, 2011

The locked nature of Apple kills all deals like this... Yes they will have a userbase but it will only be the few people with Apple TV or an iPhone owner

4. cmdacos

Posts: 4270; Member since: Nov 01, 2016

Not a big deal. Current Apple exclusives are on Kodi.

7. RebelwithoutaClue unregistered

Not sure about this, they opened Apple Music to other platforms as well.

11. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Apple Music is hardly exclusive content. The songs are available in every music streaming service. For TV shows, the content is exclusive so I don't think they are going to open up their content to other hardware platform and I don't expect them to because it's not the norm for the movie industry to open up their content to rivals companies.

12. RebelwithoutaClue unregistered

And TV shows/movies are never exclusive since they will be downloaded illegally if people wanna see them. Better make sure you have some legal (and paying) subscribers.

5. cmdacos

Posts: 4270; Member since: Nov 01, 2016

If the quality is the same as current offerings, no other service has to fear anything.

6. Babadook

Posts: 230; Member since: May 24, 2016

"Apple recently poached two execs from Sony Entertainment" ----Hahaha. As a huge movie buff, this is very laughable

8. Spyro

Posts: 334; Member since: Mar 29, 2017

Same. Sony is notorious for their greedy film business. Take the Emoji Movie for example.

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