Apple marketing power, inconsistent video purchasing habits confusing Hollywood
With Apple both throwing its weight around to capture exclusives for video content -- and not willing to get in a bidding war with other streaming services for content -- Hollywood is said to be beginning to question the company's future intentions as a media venue.
Over the last two years, Apple appears to be reinforcing the appearance of video as a "hobby" for the company, as famously stated by Apple co-founder Steve Jobs talking about the Apple TV.
In the last year, Apple engaged comedian Chris Rock in discussions about exclusive content, according to The Information. Ultimately, Apple walked away from the deal, with two exclusive stand-up shows ending up on Netflix, for $20 million a show.
On the other hand, movie deals for iTunes are being pursued more aggressively, with Apple not being afraid to swing its promotional weight around to cap a deal. Apple's discussions with the producers of Michael Moore's "TrumpLand" documentary started very early on in production, and Apple sealed the deal with heavy promotion of the feature on the iTunes homepage, according to people familiar with the discussions.
Also confusing the issue is Apple's failure to secure a rumored over-the-top programming package for the Apple TV, as well as the all-in approach the company is taking to the "Planet of the Apps" reality show, currently in production.
Analysts believe that not having a wide array of original programming hurts Apple in the long run by keeping market share low, eliminating syndication broadcast revenues, and giving no reasons for consumers to lock-in to iTunes and Apple TV.
However, Apple Chief Executive Tim Cook's saying that Apple was interested in "content creation and ownership" in the most recent financial results report fueled speculation that Apple plans to delve further into the media market.
Apple is also said to be working on its first-ever scripted series, "Vital Signs," starring company executive Dr. Dre. Furthermore, Apple has also purchased the rights to James Corden's "Carpool Karaoke" in July.
Over the last two years, Apple appears to be reinforcing the appearance of video as a "hobby" for the company, as famously stated by Apple co-founder Steve Jobs talking about the Apple TV.
In the last year, Apple engaged comedian Chris Rock in discussions about exclusive content, according to The Information. Ultimately, Apple walked away from the deal, with two exclusive stand-up shows ending up on Netflix, for $20 million a show.
On the other hand, movie deals for iTunes are being pursued more aggressively, with Apple not being afraid to swing its promotional weight around to cap a deal. Apple's discussions with the producers of Michael Moore's "TrumpLand" documentary started very early on in production, and Apple sealed the deal with heavy promotion of the feature on the iTunes homepage, according to people familiar with the discussions.
Also confusing the issue is Apple's failure to secure a rumored over-the-top programming package for the Apple TV, as well as the all-in approach the company is taking to the "Planet of the Apps" reality show, currently in production.
Analysts believe that not having a wide array of original programming hurts Apple in the long run by keeping market share low, eliminating syndication broadcast revenues, and giving no reasons for consumers to lock-in to iTunes and Apple TV.
However, Apple Chief Executive Tim Cook's saying that Apple was interested in "content creation and ownership" in the most recent financial results report fueled speculation that Apple plans to delve further into the media market.
Apple is also said to be working on its first-ever scripted series, "Vital Signs," starring company executive Dr. Dre. Furthermore, Apple has also purchased the rights to James Corden's "Carpool Karaoke" in July.
Comments
But Comcast has a data cap?? That sucks. is there no other option in your area?
Imagine if Apple was cranking out tens of movies and shows a year? in about five years they'd have quite the library.
Now people will want an Apple TV for this exclusive content and now content owners will want to strike a deal with Apple.
I disagreed with this acquisition in the past but after seeing the TV app, Netflix+Apple seems like the perfect marriage. On my Apple TV today I noticed the most used content apps are all third-party apps. Netflix being the biggest one.
I would like to know where you perceive this value to be?
It's amazing how the US decided that James Corden was funny, and Piers Morgan was some kind of pinko-liberal.
The industry salivates at the money Apple can bring to bear, but without a clear business plan and negotiating with a fragmented industry, content primadonnas, and confusing panoply of outside companies getting into the "business" e.g., Microsoft, COMCAST, and AT&T as well as Amazon and NETFLIX there is no obvious path forward.
It it is hard to imagine that Disney's CEO Bob Iger on Apple board has not cautioned about Apple getting too involved too soon without clear plan. Therefore, it is not a surprise and while Apple is sincere regarding content and video it may be awhile before things make sense for a major presence and push.
Lastly, exactly what is in it for Apple customers for Apple to embark on this - recall customer value has remained a guiding principle for whatever Apple does.
Maybe, but unless I am missing something, it doesn't seem to me that Cue has been ringing up a string of successes. Please tell me why I am wrong.
It's funny, but I am beginning to tire of the following steps: (i) Switch TV inputs; (ii) turn on Apple TV; (iii) navigate to Netflix/iTunes Movies/HBO Go/Youtube/etc. etc; (iv) go through sign-ups seemingly randomly again and again (depends on the app); (v) when done, press and hold once to get to main screen; (vi) press and hold once again to turn off AppleTV; (vii) switch input back to TV viewing.
Even though the "connected TV" interface is less elegant than Apple's, I like the fact that two out of the three TVs have Amazon/Netflix/Youtube buttons right on the remote (there's one for Hulu too, but I don't subscribe), and allow me to watch those channels with one click.
Let me put it this way: AppleTV is likely not a must-have so as to be able to attract non-Apple users anymore, like it used to be.