Apple Inc. (NASDAQ:AAPL) plans to spend $1 billion on original programming in 2018, as it moves to pursue growth opportunities in the content streaming business. Reports indicate that some of the company’s top executives have held meetings with high ranking Hollywood agents and producers to hear pitches about shows they can invest in.
Original Programming Push
The hiring of former Sony Pictures Television executives Jamie Erlicht and Zack Van Amburg appears to have set the ground running on the original programming push. The $1 billion budget all but signals how serious the tech giant is, as it moves to flex its muscles in the content business. Its budget is almost similar to what Amazon.com, Inc. (NASDAQ:AMZN) spent as it made its first entry into the content business.
Producers are reportedly eager to work with Apple given what the tech giant brings to the table in terms of financial power. However, others continue to question how the company plans to distribute its content given that it does not have a wide catalog of content.
Apple is not new to the business of producing original shows. Its reality show Planet of the Apps has had its fair share of success and ‘Carpool Karaoke’ continues to send shockwaves online. The company is reportedly working on new scripted series featuring Dr. Dre. Reports indicate that the company could acquire or produce up to 10 television shows come next year.
“We have put our toe in the water with doing some original content for Apple Music. We're learning a lot about the original content business and thinking about ways that we could play at that,” said Apple CEO Tim Cook.
Competition
While Apple’s $1 billion commitment is no match to $6 billion that Netflix is planning to spend this year, its push into original programming should be a point of concern. The tech giant boasts of a massive cash balance that it can use to rival with ease the likes of Netflix, Inc. (NASDAQ:NFLX) that have operated a monopoly in the industry.
Apple’s marketing clout, as well as its global reach, should make it a fearsome competitor as it moves to pursue opportunities in the crowded media industry.
