Apple to invest $1 billion to create more original TV shows

by Leon Thompson August 18, 2017, 0:23
Apple to invest $1 billion to create more original TV shows

The Wall Street Journal reports Apple's planned budget is about half of what HBO spent on content past year, which is a big deal for a company with little to no experience in original shows. On Wednesday, those stocks barely budged. In comparison, Netflix is expected to spend about $6 billion this year. They simply didn't appreciate the new dynamics, making way for the new duo Jamie Erlicht and Zack Van Amburg make it onboard.

We could, in fact, see many original content creators being paid vast sums of money to switch to Apple just to build up their original content offerings.

Apple has been long rumored to be planning to make its own lineup of original video content for its own streaming service.

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For Apple, adding original programming to Apple Music is something that can only increase the company's burgeoning services business. The company will spend the $1 billion by producing new shows and also acquiring them for its Apple Music platform.

Premium video content has become a valuable commodity, but one question is whether Apple is too late to the game and coming in with too small a budget, even at the $1 billion level. Development will be overseen by Matt Cherniss, former president of WGN, the sources say.

The number itself is significant, with HBO reportedly investing $2 billion over the next year, plus $1 billion from Amazon and a crazy-high-sounding $7 billion from Netflix. Apple wants something as big as Game of Thrones on its books. Though both shows have received very poor critical reception, this surely has not discouraged Apple. Bundling the two together for the same price of around $10 per month would instantly give Apple a big leg up on the competition, with a combination music/video streaming service providing an exceptional value to consumers.

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In addition, Apple actually has experience in producing some original content videos, such as Planet of the Apps.

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

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