Apple to invest $1 billion into original video content
Taking on Netflix and Amazon?
Apple is reportedly ready to invest up to one billion dollars to procure and produce its own TV and film content, over the next twelve months, in a bid to secure exclusive material for its own streaming platforms.
The original report came courtesy of the Wall Street Journal, citing the usual, “people familiar with the matter” as sources but has since been corroborated by Bloomberg. According to Bloomberg, a new team based in Los Angeles will be responsible for the project, headed up by two former Sony TV executives, Jamie Erlicht and Zack Van Amburg, who were both recruited in June 2017.
Apple is looking to increase its revenues from its services businesses and has already released some original programming over the last few months, including the highly successful ‘Carpool Karaoke’ with James Corden in the driving seat. It is expected that Apple will have released up to 10 original programmes by the end of 2017.
For a little context, the reported $1 billion investment is dwarfed by the estimated $6 billion Netflix pumps in, annually, and the $4.5 billion Amazon has spent in the last 12 months. It is also reported to be roughly half of what HBO spent in 2016 on original content, with each episode of Game of Thrones costing $10 million to produce, alone.
Still, if the reports prove to be correct, it’s a significant move from Apple and will lead to yet more fragmentation of original programming.
Sources: WSJ & Bloomberg
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