Does the World Really Want Content From Apple?

Allan Goodman
August 18, 2017

Amazon is set to spend roughly $4.5 billion on Prime Video programming in 2017, according to JPMorgan analysts estimates, while HBO spends almost $2 billion on content per year.

The Wall Street Journal, citing unnamed people familiar with the matter, on Wednesday reported that Apple is budgeting "roughly $1 billion" over the next year for its push into original content.

Apple's stuttering foray into Hollywood will be given a US$1 billion war chest over the next year to establish the tech giant itself as a serious player in the TV and movie industry. This year, Netflix is expected to spend more than $6 billion on its shows.

The report goes on to say that Apple's budget will be handled by Jamie Erlicht and Zack Van Amburg.

Apple, Facebook and other digital and tech giants are increasingly keen to own content as part of wider strategies to control the entertainment supply chain.

Bill Gates reduces Microsoft stake with $4.6bn donation
He gave away US$16 billion worth of the stock in 1999 and US$5.1 billion a year later, according to calculations by Bloomberg . Mr Gates has probably directed more than 700 million shares of Microsoft into the foundation, adjusting for stock splits.

Just where those shows would appear is not immediately clear, as Apple doesn't have a dedicated video platform. yet.

If true, Apple's move will cause streaming service rivals Amazon, HBO, Netflix, and Hulu to keep watch.

Sources claim that Apple is set to produce as many as ten of its own original TV shows in 2018. Apple also recently hired the former WGN America President Matt Cherniss who will oversee development of the video unit. Shows like Game of Thrones cost as much as $10 million per episode, and half hour comedies can hit $2 million per ep. That means if they want to pursue a Game of Thrones-like original series that's super-ambitious and expensive, or get into business with big-name directors, showrunners or actors, or even pursue theatrical releases, they can afford to. Reports indicate that the company could acquire or produce up to 10 television shows come next year. Basically Apple has the power to pull off ambitious projects with big name directors and actors and may even pull off theatrical releases to be eligible for Academy Awards, which is something that Netflix has been wrestling with now.

Let's see where Apple's decision to produce original content takes them.

Apple aims to double its service business, which includes Apple Store, Apple Pay and Apple Music to $50 billion by 2020.

Other reports by PlayStation Move reviews

Discuss This Article