Apple considering original TV shows to boost 'cable-like' streaming coming in Sept. - report
In continuing efforts to launch a streaming TV service, Apple is now trying to pitch studios and producers on investing in exclusive TV shows, according to a Friday report.
Netflix's original series Narcos.
The company first began talks late last year, and no agreements have been signed yet, two sources told The Street contributor Ronald Grover. Grover was formerly a Los Angeles bureau chief with Reuters and BusinessWeek.
One of the sources said that Apple is hoping to complete deals in time for announcing exclusive video alongside a streaming TV service in September, which is also when a next-generation iPhone should launch.
The person in charge of the talks is reportedly Apple's senior VP of Internet Software and Services, Eddy Cue, who often handles media negotiations. Another person involved is said to be Robert Kondrk, VP of iTunes content.
In December reports claimed that Apple was putting its streaming TV plans on hiatus, as it couldn't get content owners to agree to a "skinny" channel bundle priced under $30. At least some of those owners didn't want networks to be left out. Some recent accounts have suggested, however, that the project is still alive, even if it hasn't made any tangible progress.
Rumors of Apple interest in original programming date back to August, although these were more vague apart from a claim that the company tried to lure former Top Gear hosts Jeremy Clarkson, Richard Hammond, and James May, who ultimately went to Amazon.
Following the success of Netflix with shows like House of Cards and Orange is the New Black, several other streaming services have followed in its footsteps. Apple might consider original programming vital to distinguishing its product.
Netflix's original series Narcos.
The company first began talks late last year, and no agreements have been signed yet, two sources told The Street contributor Ronald Grover. Grover was formerly a Los Angeles bureau chief with Reuters and BusinessWeek.
One of the sources said that Apple is hoping to complete deals in time for announcing exclusive video alongside a streaming TV service in September, which is also when a next-generation iPhone should launch.
The person in charge of the talks is reportedly Apple's senior VP of Internet Software and Services, Eddy Cue, who often handles media negotiations. Another person involved is said to be Robert Kondrk, VP of iTunes content.
In December reports claimed that Apple was putting its streaming TV plans on hiatus, as it couldn't get content owners to agree to a "skinny" channel bundle priced under $30. At least some of those owners didn't want networks to be left out. Some recent accounts have suggested, however, that the project is still alive, even if it hasn't made any tangible progress.
Rumors of Apple interest in original programming date back to August, although these were more vague apart from a claim that the company tried to lure former Top Gear hosts Jeremy Clarkson, Richard Hammond, and James May, who ultimately went to Amazon.
Following the success of Netflix with shows like House of Cards and Orange is the New Black, several other streaming services have followed in its footsteps. Apple might consider original programming vital to distinguishing its product.
Comments
But with this rumor and the one about Apple having a team working on AR/VR it seems to me this is Apple's way of signaling to Wall Street and the public that they've got stuff in the pipeline. I'm sure this was all over CNBC today.
While reading the headline I was thinking Apple could buy a few smaller studios/programs and get exclusive classic shows on their device along with NEW exclusive content.
Time Warner is a little too expensive and they might be better off making their own content and purchasing a few classic programs for less than half the price. I'd like to see those classic TV shows that TV Land has as exclusives. I think that could bring in a wide audience along with younger "hip" audiences with NEW content.
Apple has the money to have various shows and movies in production creating a NEW "cable" that can compete with Comcast and others.
There are a whole lot of industries out there that Apple has never played in. That's where they need to invest. Smartphones are becoming a commodity product.
And in media, Apple would be on the forefront of G-rated content that actually makes money! Apple will release family fare and make billions doing it.
I agree Time Warner is too expensive but there's no way legacy content would cost any more than original content.
What you missed is that Amazon and Netflix are available on AppleTV but Apple's content won't be available anywhere else. So the only people missing out on content are those who don't own an AppleTV, this in turn makes Apple tons of money.
For sure, this is kinda exciting. Hope it's true.
In other words, it is likely to be a loss-leader approach to selling more devices. Nothing wrong with that, but it can be achieved in the same way by licensing content exclusively, or just more of it.
Apple has the money to do many things...choosing the best ones is the hard part.
Good try though.
First time I've heard anyone worry about Apple having too much cash.
Beats 1 isn't necessarily original content in the pure sense - the music is licensed - the original part are the DJ's. Quite a bit different from determining which TV content to produce in terms of new series. Netflix has a HUGE lead in this area & been doing it for years - building upon over a decade of data on consumer preferences. Apple does have iTunes purchases and rentals data on consumer interests, but the amount of content viewed per user (as we can see from the streaming data) is an order of magnitude less.
And to level set - NFLX stock is worth a lot, but the company's revenue and earnings are peanuts compared to Apple (for those that think making content will at all move the needle for Apple on its own). Content for Apple would just be a driver for purchasing h/w, and they need a lot of content to make that happen.
Better off doing some strong partnerships with Disney and Time Warner IMO.
That's a very good point.