Apple's billion-dollar video investment seen leading to Netflix competitor

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in iPod + iTunes + AppleTV
Not content with just Apple Music subscriptions, a new prediction says Apple could be gearing up for an "all in one Apple video and music offering," offering original content for a monthly fee within the next two to three years.




According to an analysis of the situation by Loup Ventures, Apple will grow its unique video content budget by an average of 54 percent every year through 2022. While the magnitude of the spend is less than that of Amazon or Netflix, the average growth eclipses both.

Apple is expected to "have a running start" at an estimated 75 million subscribers, which is a threshold for a "winning content platform," according to Loup Ventures. While Apple's main competitors should be Amazon and Netflix, the streaming video field is crowded, with more than 200 subscription services available to customers.

The report also expects that Apple will stay clear of catalog licensing, and focus heavily on original content. While Apple's lucrative Services segment will grow, gross margin might decline by up to 5 percent as a result of the expenditure on content in advance of a rebranding that may encompass Apple Music, and the assorted iTunes content stores.




Apple's latest move in unique content is a new morning show-related drama starring Jennifer Aniston and Reese Witherspoon on tap. Also, Apple has reportedly given a blank check to Drake to produce whatever shows or movies he wants.

In October, Apple signed a deal with Amblin Television and NBCUniversal to revive "Amazing Stories," an anthology science fiction series created by Steven Spielberg that ran for two seasons in the 1980s. Apple is expected to air 10 episodes, spending over $5 million on each show.

All three ventures are believed to be part of a broader $1 billion investment in original video programming, concentrating on big-budget dramas similar to "Breaking Bad" or "Game of Thrones." Those efforts are reportedly being led by the June hiring of former Sony Pictures Television executives Jamie Erlicht and Zack Van Amburg, as well as development head Matt Cherniss.

Comments

  • Reply 1 of 15
    dachardachar Posts: 330member
    Netflix is certainly a brand leader. Amazon and now Apple offer packages that now both include streaming music and video. If all three continue to grow their original content will there come a tipping point soon when there is mass exodus from the traditional satellite and cable suppliers? 
  • Reply 2 of 15
    What is Loup Ventures?
  • Reply 3 of 15
    What do they mean a running start of 75 million ? based on what ? Is it like when this service drops or more accurately (evolves from Apple music) it'll instantaneously take Apple from 30 to 75 ? Why ? Also interesting that no mention of Disney in this, I think thats the death-star coming right there. Strangely too Drake has some carte blanche on content at Apple, really ? Ok
    edited November 2017 LukeCage
  • Reply 4 of 15
    maestro64maestro64 Posts: 4,078member
    Amazon may have 90M prime subscribers, most of them do not use prime video. Unlike Apple and Netflix where their subscribers do in fact consumer content. These analyst who throw out numbers and try to tell a story with no understanding of the numbers.

    I think everyone would agree Apple sits in strong positions lots of money. 1B users world wide, they can create and own new content with no limits of how they use it or which markets they sell it, is much better position than someone else owning the content.

    Also, those who watch streaming content is more interested in what is new verses what is old, very few young people are interested in watching shows from yesteryear.
  • Reply 5 of 15
    Rayz2016Rayz2016 Posts: 3,506member
    Loup who?

    And only defence contractors are ever given a ‘blank cheque’. 
  • Reply 6 of 15
    adm1adm1 Posts: 762member
    dachar said:
    Netflix is certainly a brand leader. Amazon and now Apple offer packages that now both include streaming music and video. If all three continue to grow their original content will there come a tipping point soon when there is mass exodus from the traditional satellite and cable suppliers? 
    after being a long time Sky (satellite) subscriber, I this week cancelled my sub and we're goin all-in on FTA (freesat) with netflix/amazon prime video. Ill supplement this with a £4.99 Discovery "channels" add-on on Amazon Prime Video so I get my gasmonkey/diesel brothers/bitchin rides etc. fix.

    For Apple I think it's a risky bet going for original content only - it'll have to be REALLY good to get subscriber numbers up. I know personally and from many others around me, the majority of our netflix usage is not the original stuff but the back catalogues from other producers. Guessing no films on the apple service either.
  • Reply 7 of 15
    maestro64 said:
    Amazon may have 90M prime subscribers, most of them do not use prime video. Unlike Apple and Netflix where their subscribers do in fact consumer content. These analyst who throw out numbers and try to tell a story with no understanding of the numbers.

    I think everyone would agree Apple sits in strong positions lots of money. 1B users world wide, they can create and own new content with no limits of how they use it or which markets they sell it, is much better position than someone else owning the content.

    Also, those who watch streaming content is more interested in what is new verses what is old, very few young people are interested in watching shows from yesteryear.
    I have an IPhone & IPad and I’m a Prime member (Kindle Unlimited).  I use Amazon Music & Video exclusively.

    Netflix has a bunch of junk I’ll never watch... (I’ll use a free trial occasionally)

    We’ll see about Apple, but the inability to move music & videos between devices (platforms) is a major reason why I’m sticking with Amazon.  

    My last phone was an Android, my IPhone is better... but who knows what the future holds.
  • Reply 8 of 15
    For the love of god Apple please stop your feckless, googlesque throw crap at the wall and see what sticks approach to social/media/culture.

    It has not been working..... for years...

    Apple Music is the most significant and clearest example of this. Despite the obvious benefits of Apple Music (e.g. Siri, nice UI), and despite the many advantages in terms of ability to negotiate deals with the music industry, have a large music library, etc... Apple Music is still behind in their competitors in terms of usability and enjoyment.

    It is widely thought/accepted that Apple Music is only good for pop music, and maybe hip-hop. That's about it. Very popular and continually growing categories like EDM are all but neglected.

    The most obvious and salient example of Apple Music's deficits is that after years of dominating the music industry, Apple Music still sucks at sub-genre support. That should be the FIRST thing you get right.. being able to allow people to listen to what they want...THEN you try to swing for the fences like they're doing now. But for every home run suggestion there's 3 obnoxious strikes that completely ruin the experience. It's very hit or miss, which makes it impossible to rely on on a regular basis, which means, for most people, it's not worth it.

    Another glaring deficit is the, still, completely inept social/personal-expression functionality.

    Strangely, Apple Music goes completely against Apple's MO for every other (very successful) product, which are designed to 'get out of the way' of the user and facilitate the user's personal experience. Instead, with Apple Music, we get to listen to whatever the Apple/Beats DJ-gods feel is the best for us to listen to. It's frustrating. And it's also kind of minboggling that it hasn't improved, despite years of (squandered) time.
    edited November 2017
  • Reply 9 of 15
    calicali Posts: 3,495member
    For the love of god Apple please stop your feckless, googlesque throw crap at the wall and see what sticks approach to social/media/culture.

    It has not been working..... for years...

    Apple Music is the most significant and clearest example of this. Despite the obvious benefits of Apple Music (e.g. Siri, nice UI), and despite the many advantages in terms of ability to negotiate deals with the music industry, have a large music library, etc... Apple Music is still behind in their competitors in terms of usability and enjoyment.

    It is widely thought/accepted that Apple Music is only good for pop music, and maybe hip-hop. That's about it. Very popular and continually growing categories like EDM are all but neglected.

    The most obvious and salient example of Apple Music's deficits is that after years of dominating the music industry, Apple Music still sucks at sub-genre support. That should be the FIRST thing you get right.. being able to allow people to listen to what they want...THEN you try to swing for the fences like they're doing now. But for every home run suggestion there's 3 obnoxious strikes that completely ruin the experience. It's very hit or miss, which makes it impossible to rely on on a regular basis, which means, for most people, it's not worth it.

    Another glaring deficit is the, still, completely inept social/personal-expression functionality.

    Strangely, Apple Music goes completely against Apple's MO for every other (very successful) product, which are designed to 'get out of the way' of the user and facilitate the user's personal experience. Instead, with Apple Music, we get to listen to whatever the Apple/Beats DJ-gods feel is the best for us to listen to. It's frustrating. And it's also kind of minboggling that it hasn't improved, despite years of (squandered) time.
    This isn’t confirmed by Apple so it’s not throwing crap at the wall.

    I disagree with catering to less popular genres first. That actually goes against logic.

    Looking at the charts is Apple really around half of Spotify’s subscribers? That’s amazing. And already passed Hulu?!
  • Reply 10 of 15
    brucemcbrucemc Posts: 1,385member
    For the love of god Apple please stop your feckless, googlesque throw crap at the wall and see what sticks approach to social/media/culture.

    It has not been working..... for years...

    Apple Music is the most significant and clearest example of this. Despite the obvious benefits of Apple Music (e.g. Siri, nice UI), and despite the many advantages in terms of ability to negotiate deals with the music industry, have a large music library, etc... Apple Music is still behind in their competitors in terms of usability and enjoyment.

    It is widely thought/accepted that Apple Music is only good for pop music, and maybe hip-hop. That's about it. Very popular and continually growing categories like EDM are all but neglected.

    The most obvious and salient example of Apple Music's deficits is that after years of dominating the music industry, Apple Music still sucks at sub-genre support. That should be the FIRST thing you get right.. being able to allow people to listen to what they want...THEN you try to swing for the fences like they're doing now. But for every home run suggestion there's 3 obnoxious strikes that completely ruin the experience. It's very hit or miss, which makes it impossible to rely on on a regular basis, which means, for most people, it's not worth it.

    Another glaring deficit is the, still, completely inept social/personal-expression functionality.

    Strangely, Apple Music goes completely against Apple's MO for every other (very successful) product, which are designed to 'get out of the way' of the user and facilitate the user's personal experience. Instead, with Apple Music, we get to listen to whatever the Apple/Beats DJ-gods feel is the best for us to listen to. It's frustrating. And it's also kind of minboggling that it hasn't improved, despite years of (squandered) time.
    While I am a long term iTMS user, my son signed us up for an Apple Music trial.  I have to say that overall I agree.  For my music tastes (both rock and some country between 70's to current), the UI doesn't do well at helping me find music that I am looking for.  I am not saying the service isn't good for many people, but I am unlikely to stick with it.  Better for someone like me, who already has a sizeable collection of purchased music, to take my $10/month and expand that, and continue to build my own playlists.
  • Reply 11 of 15
    I am an Apple fanatic and love my Apple Music but I am concerned that Apple’s corporate culture (which I support) may not translate to media production.  I hate Amazon but love Netflix and HBO.  Narcos, GOTs, Westworld, the Deuce, Silicon Valley, Glow, Stranger Things etc are all amazing shows that push boundaries of taste and culture.

    I am not sure Apple is brave enough to do this...brave in other ways but not with culture and taste.  Examples include recent censorship of carpool karaoke and an app store that forbids nudity etc.  Where is Dr. Dre’s promised show with nudity and gratuitous violence?
    edited November 2017 Bluntcali
  • Reply 12 of 15
    Good plan Apple, because Planet of the Apps and Carpool Karaoke were such stellar successes.
  • Reply 13 of 15
    BluntBlunt Posts: 197member
    Well as long as Apple is afraid to show boops, people smoking and drinking and people killing, i say don't do it. We don't need typical American mediocre commercial shit. So clad HBO and Netflix came allong.
  • Reply 14 of 15
    Its quite a reasonable plan to me 
  • Reply 15 of 15
    fallenjtfallenjt Posts: 3,815member
    adm1 said:
    dachar said:
    Netflix is certainly a brand leader. Amazon and now Apple offer packages that now both include streaming music and video. If all three continue to grow their original content will there come a tipping point soon when there is mass exodus from the traditional satellite and cable suppliers? 
    after being a long time Sky (satellite) subscriber, I this week cancelled my sub and we're goin all-in on FTA (freesat) with netflix/amazon prime video. Ill supplement this with a £4.99 Discovery "channels" add-on on Amazon Prime Video so I get my gasmonkey/diesel brothers/bitchin rides etc. fix.

    For Apple I think it's a risky bet going for original content only - it'll have to be REALLY good to get subscriber numbers up. I know personally and from many others around me, the majority of our netflix usage is not the original stuff but the back catalogues from other producers. Guessing no films on the apple service either.
    I dumped my service 5 years ago and didn't miss a thing. My Comcast Xfinity threw in all local channels and HBO with my internet service, but still, I of OTA antenna for multiple TVs in the house instead of 1 cable box from Xfinity. I had Amazon Prime but rarely used because the contents are limited. I use Netflix, iTunes and lately DirectTV Now (which sucks ball and I may just kill it soon).
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