Apple marketing power, inconsistent video purchasing habits confusing Hollywood

Posted:
in iPod + iTunes + AppleTV
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.
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Comments

  • Reply 1 of 23
    lkrupplkrupp Posts: 7,304member
    Oh look Mommy! Another “Apple has lost its way and doesn’t know what to do next” article. There’s so many of them Mommy and I’m scared. Can we go visit Steve Jobs’s gave and pray Mommy? Please!
    buckalecjbdragonargonauttycho24Solinolamacguyjony0lolliver
  • Reply 2 of 23
    Q sog35
    irelandcaliargonautSolilolliver
  • Reply 3 of 23
    jbdragonjbdragon Posts: 2,169member
    I see no reason for Apple to just do what everyone else is doing which is just a channel bundle which is just the same thing Cable/Satellite company's have done forever. Nothing really has changed. It's just now you have options to who to give your money to. You can't get SlingTV without ESPN even if you hate sports. Unless Apple does some kinf of A-la-cart, where I can pick the channels I actually want. Where's there's a price for each channel. Anything from FREE (QVC or HSN) to 50 cents or $1. Whatever the channel thinks they're worth. If that's $15, so be it. See how many people get it!!! There's no point in donig what everyone else is doing, which is the same old thing. Nothing really has changed except who you're paying. What's worse, company's like Comcast, all in the name of FAIRNESS (HAHAHAHA) throwing on a CAP trying to slow down the end result of being a dumb pipe. Losing their paying TV viewers. The more TV streaming you're doing, the faster you're going to his that cap. In fact just 2 people in my house, I've gone past the 1TB CAP the last couple months. It's really a scam to get another $50 a month for what you already had!!!
  • Reply 4 of 23
    irelandireland Posts: 17,669member
    Wish they'd buy Netflix.
    caliargonaut
  • Reply 5 of 23
    gatorguygatorguy Posts: 21,095member
    jbdragon said:
    I see no reason for Apple to just do what everyone else is doing which is just a channel bundle which is just the same thing Cable/Satellite company's have done forever. Nothing really has changed. It's just now you have options to who to give your money to. You can't get SlingTV without ESPN even if you hate sports. 
    Sling Blue, 40 channels for $25, no ESPN. of course there are a couple of FoxSports channels but along with that you get your local Fox broadcast station which is a plus for those not wanting to put up an antenna. As for the price that's way less than a dollar a channel. 

    But Comcast has a data cap?? That sucks. is there no other option in your area?
    edited November 2016
  • Reply 6 of 23
    calicali Posts: 3,495member
     I said it long ago. If Apple can't strike a deal with content owners they need to create their own content. 

     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. 

    ireland said:
    Wish they'd buy Netflix.

     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. 
    edited November 2016
  • Reply 7 of 23
    brucemcbrucemc Posts: 1,540member
    ireland said:
    Wish they'd buy Netflix.
    Can you provide some rough math on how that looks in terms of value for money?  Netflix is already extremely highly valued (350-ish P/E), it likely takes a significant premium to purchase it, and your idea is to then discount the services for Apple customers.  Outside of AppleTV and Apple Watch, Apple has effectively hit the majority penetration rate of their market for iPhone, iPad, Mac (they can still grow slowly in each).  So having Netflix isn't going to spur significantly new sales of existing products (except ATV perhaps as noted, but that is $149 device per household with a likely upgrade rate of every 5 years).  

    I would like to know where you perceive this value to be?
    nolamacguytycho24lolliver
  • Reply 8 of 23
    ireland said:
    Wish they'd buy Netflix.
    They'd have to renegotiate all contracts and it probably wouldn't be the same as some wouldn't want Apple to have streaming rights. 
  • Reply 9 of 23
    James Corden... Jeez. The people of Great Britain thank you for taking him from us. *no returns, no exchanges*
    anome
  • Reply 10 of 23
    Eddy Cue and Jimmy Iovine running the show, nuff said.
  • Reply 11 of 23
    ireland said:
    Wish they'd buy Netflix.
    I like the way you think....how about a satellite TV company? And then negotiate everything from that vantage point.  $25/mo.
    edited November 2016
  • Reply 12 of 23
    anomeanome Posts: 1,296member
    darkpaw said:
    James Corden... Jeez. The people of Great Britain thank you for taking him from us. *no returns, no exchanges*

    It's amazing how the US decided that James Corden was funny, and Piers Morgan was some kind of pinko-liberal.
    dachar
  • Reply 13 of 23
    Apple is being cautious regarding the content industry. The market is littered with companies who have decided to get into the "business."  Similar to fashion, content creation is complex, expensive, and very risky. Music has some expertise Dre et al, but video content remains elusive regarding who can take informed leadership.  

    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. 
  • Reply 14 of 23
    ireland said:
    Wish they'd buy Netflix.
    It's a ludicrously overpriced company.
    lolliver
  • Reply 15 of 23

    lkrupp said:
    Oh look Mommy! Another “Apple has lost its way and doesn’t know what to do next” article. There’s so many of them Mommy and I’m scared. Can we go visit Steve Jobs’s gave and pray Mommy? Please!
    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.
  • Reply 16 of 23
    calicali Posts: 3,495member

    lkrupp said:
    Oh look Mommy! Another “Apple has lost its way and doesn’t know what to do next” article. There’s so many of them Mommy and I’m scared. Can we go visit Steve Jobs’s gave and pray Mommy? Please!
    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.
     Cue is a good employee but he has way too much on his hands. He was amazing with Apple Pay but the same guy who controls Apple Pay shouldn't be touching TV.
  • Reply 17 of 23
    dachardachar Posts: 330member
    I think Amazon's deal for The Grand Tour to replace Top Gear will be a good test on the value and return from doing your own video content. Being able to view The Grand Tour persuaded me to take up an Amazon Prime subscription. This has lead to me buying more items via  Amazon as my subscription includes free delivery. So the production of the programme by Amazon has produced more business for them from me. The same principle could apply to Apple if they started producing exclusive programmes that customers wanted to watch and who would then buy Apple products such as iPads and AppleTVs . 
    anantksundaramlolliver
  • Reply 18 of 23
    dachar said:
    I think Amazon's deal for The Grand Tour to replace Top Gear will be a good test on the value and return from doing your own video content. Being able to view The Grand Tour persuaded me to take up an Amazon Prime subscription. This has lead to me buying more items via  Amazon as my subscription includes free delivery. So the production of the programme by Amazon has produced more business for them from me. The same principle could apply to Apple if they started producing exclusive programmes that customers wanted to watch and who would then buy Apple products such as iPads and AppleTVs . 
    I get what you're saying, but that seems like a long way to go to get someone to allot think about buying cereal and peanut butter from your store as well. Programming seems like a distraction. I've been waiting for the grand tour for so long I don't even care to watch Jeremy Clarkson punch anyone in the face any more. ;) More to the point, even though I have Amazon prime for shopping. I could care less about their "TV" offerings. Most of it is priced the same as iTunes with a few series that stream for free. It's only a useful if you don't have an Apple and/ or Hulu, Netflix, HBO or Starz. I think right there are enough options to keep Apple uninterested in the market and the market uninterested in what Apple could offer. I mean what incredible show could generate that much buzz? It would have to be on the scale of GOT to have much of an effect.  
    edited November 2016
  • Reply 19 of 23
    dachar said:
    I think Amazon's deal for The Grand Tour to replace Top Gear will be a good test on the value and return from doing your own video content. Being able to view The Grand Tour persuaded me to take up an Amazon Prime subscription. This has lead to me buying more items via  Amazon as my subscription includes free delivery. So the production of the programme by Amazon has produced more business for them from me. The same principle could apply to Apple if they started producing exclusive programmes that customers wanted to watch and who would then buy Apple products such as iPads and AppleTVs . 
    The exact same experience goes for me! (I still can't stand their website, but damn, I am now suffering from regret that I did not sign up for Prime sooner. Also, two out of the three TVs in my house now allow me to access Prime movies/TV as well as Netflix/Youtube directly, and as a result, I am using my AppleTV less and less for video content).
    edited November 2016
  • Reply 20 of 23

    ...Most of it is priced the same as iTunes with a few series that stream for free. It's only a useful if you don't have an Apple and/ or Hulu, Netflix, HBO or Starz. ...
    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.
    gatorguy
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