With authentic content material akin to forex within the tech world as of late, it’s no shock that Apple over the previous few months has gotten lifeless severe about growing authentic programming designed to lure viewers away from companies like Netflix and HBO. To this finish, Apple this previous August established a $1 billion fund for use for growing, producing, and buying authentic content material.
Since then, Apple has impressively ramped up its authentic programming efforts. Over the previous couple of months, we’ve seen Apple ink an intriguing deal to revive the award-winning 80s present Amazing Stories together with plans to roll out a brand new authentic sequence starring A-listers Jennifer Aniston and Reese Witherspoon. More lately, phrase surfaced that Apple now finds itself within the midst of a bidding conflict with HBO for a brand new sci-fi drama from J.J. Abrams.
By all accounts, Apple is lastly making some sensible strikes within the TV house, a degree value highlighting given the forgettable catastrophe that was Planet of the Apps. Still, there’s one facet to Apple’s TV technique that, from what we are able to at the moment collect, appears to be conspicuously absent. Specifically, Apple will want much more content material if it ever needs to be taken critically as streaming video supplier.
Take Netflix, for instance. The streaming big is famend for its authentic content material, however the overwhelming majority of Netflix viewers spend their time both watching films or present TV reveals Netflix has a license for. Hulu has an identical dynamic as most viewers on that platform spend their time watching licensed TV content material. The following chart from Hub Entertainment Research (through Quartz) illustrates the breakdown properly.
Put merely, if Apple ever needs to be taken critically as a purveyor of streaming video, the corporate must shell out some more money to license films and established TV sequence on its platform. This, in fact, has the potential to eat into income Apple at the moment enjoys through promoting and renting media content material on iTunes. Looking forward, it is going to be attention-grabbing to see how Apple, if in any respect, is planning to handle the problem. As a fast apart: if Apple is solely rolling out authentic content material as a way to bolster its Apple Music subscription service, it could discover out the onerous approach that making an attempt to draw music lovers by interesting to TV lovers isn’t the neatest transfer. Similarly, if Apple thinks customers will probably be keen to pay for a month-to-month…