Tim Cook says Apple is interested in both content creation and ownership

AppleInsider · October 25, 2016 9:51PM

In typically vague fashion, Apple Chief Executive Tim Cook evaded questions and offered little in the way of details during his company's quarterly earnings conference call on Tuesday. But his comments on original content could fuel speculation that Apple plans to make more original content or perhaps acquire a high-profile content maker.

At the moment, Apple is working on some limited original content, such as the "Planet of the Apps" documentary series coming to Apple Music. And the company has also inked exclusive deals, most notably with Drake, for exclusive content.

In one context, Cook's comments on Tuesday could simply reflect those moves the company has already made.

But behind the scenes, Apple is said to have expressed interest in doing much more. And in that light, Cook's admission that Apple is interested in "content creation and ownership" could fuel speculation.

Notably, Apple is said to have considered a buyout of Time Warner in 2015. It was said that iTunes chief Eddy Cue and Time Warner officials held preliminary conversations, but they never progressed much further.

Apple is also said to be working on its first-ever scripted series, "Vital Signs," starring company executive Dr. Dre. And the iPhone maker also bought the rights to James Corden's "Carpool Karaoke" earlier this year.

ireland · October 25, 2016 10:30PM

Big picture the Apple Music efforts thus far are non-existent. They are fun little additions to Apple Music, but not the reason people subscribe. An apps documentary coming to a music service? I don't get it. Apple, please acquire Netflix. They understand new content like no one else and have the best distribution channel in the business. Take 1/4 of your war chest and solve this problem and give Apple TV the one thing it's missing.

edited October 2016

tart apple. · October 25, 2016 10:39PM

I'm not a big Tim Cook fan. He is slowly running aapl into the ground through sure bordom and lack of vision. Innovate or go to the Kodak graveyard. Even IBM is attempting to innovate in different arenas such as the cloud and still their employees have a thick layer of dust. If innovation is a bad watch then may I remind apple that once the pet rock sold millions but was soon forgotten by the chia pet and the clapper. Yes I hAve an apple computer I like it, but even there the keyboard is annoying.

Timmy, innovate or resign and if you truly have no ideas because you are too busy shaking your ass around political views and promoting life styles, may I suggest a M&A maybe snap chat or anything. Don't be the pink version of Balmer, accounting is not innovation. Jobs was a visionary, with ideas that were way ahead of the curve. Today's apple is like watching milk slowly sour. Now go do something, anything, good luck.

anantksundaram · October 25, 2016 10:43PM

Content creation or acquisition would be a ridiculous move for Apple, IMHO. It is completely outside the domain of its expertise. The day something like a Time Warner happens -- if it ever does -- is the day that I sell my AAPL holdings.

I think Eddie Cue should go if he pursues this kind of nonsense.

I think AI is misinterpreting -- or interpreting too broadly -- Cook's comments.

edited October 2016

ireland · October 25, 2016 11:08PM

Tart apple. said:

I'm not a big Tim Cook fan. He is slowly running aapl into the ground through sure bordom and lack of vision. Innovate or go to the Kodak graveyard. Even IBM is attempting to innovate in different arenas such as the cloud and still their employees have a thick layer of dust. If innovation is a bad watch then may I remind apple that once the pet rock sold millions but was soon forgotten by the chia pet and the clapper. Yes I hAve an apple computer I like it, but even there the keyboard is annoying.

Timmy, innovate or resign and if you truly have no ideas because you are too busy shaking your ass around political views and promoting life styles, may I suggest a M&A maybe snap chat or anything. Don't be the pink version of Balmer, accounting is not innovation. Jobs was a visionary, with ideas that were way ahead of the curve. Today's apple is like watching milk slowly sour. Now go do something, anything, good luck.

Let's not turn AI into MR. The pink version of Balmer? Really? Apple makes great products and all of their recent OS releases have been the most solid releases in years—literally. They weren't first to market in smart watches but theirs is the best and they are the clear market leader. Their tablets are clearly the best out there. MS are taking a different tact and making a combi device, but I do feel doing so gives the user the worst of both worlds. You may get PS on a tablet, but it's an awful touch experience. And when PS is made to work properly with touch it'll be on iPad with a touch-first UI. Best AIO, best laptops and so forth.

There was only one Steve Jobs, but Tim is doing a fine job IMO. Fended off the FBI, looking after Mother Earth, socially conscious, hires good people, focused. I can't name a single person I'd imagine who'd run Apple better.

edited October 2016

daven · October 25, 2016 11:09PM

ireland said:

Big picture the Apple Music efforts thus far are non-existent. They are fun little additions to Apple Music, but not the reason people subscribe. An apps documentary coming to a music service? I don't get it. Apple, please acquire Netflix. They understand new content like no one else and have the best distribution channel in the business. Take 1/4 of your war chest and solve this problem and give Apple TV the one thing it's missing.

I don't get why people want Apple to buy Netflix. Why not just create a monthly rental option in iTunes that has many of the same viewing options as Netflix or Amazon Prime? It would cut in to iTunes daily rentals but maybe not as much as one would expect as a lot of people,just watch a movie on their Netflix account if it is available.

welshdog · October 25, 2016 11:22PM

daven said:

Why not just create a monthly rental option in iTunes that has many of the same viewing options as Netflix or Amazon Prime?

Licensing the shows would be a problem if already contracted to other players. Plus an Apple created channel would not have the original content the Netflix has produced to great success. If Apple wants to be in this space, they have to create content like everyone else. That is the current trend.

Someday consumers will have to have 15 different subscriptions to be able to see all the shows they want. Insane.

ireland · October 25, 2016 11:23PM

daven said:

ireland said:

Big picture the Apple Music efforts thus far are non-existent. They are fun little additions to Apple Music, but not the reason people subscribe. An apps documentary coming to a music service? I don't get it. Apple, please acquire Netflix. They understand new content like no one else and have the best distribution channel in the business. Take 1/4 of your war chest and solve this problem and give Apple TV the one thing it's missing.

I don't get why people want Apple to buy Netflix. Why not just create a monthly rental option in iTunes that has many of the same viewing options as Netflix or Amazon Prime? It would cut in to iTunes daily rentals but maybe not as much as one would expect as a lot of people,just watch a movie on their Netflix account if it is available.

Netflix has the kind of streaming customer base Apple can only dream of. They have a huge head-start in this game. Netflix is the name in streaming. Every show or indi movie wants to be on Netflix. But perhaps most important of all, not only do Netflix have a huge head start when it comes to new content creation, but they seem to understand new content creation: this is key. They know what they are doing. It's the missing piece for Apple TV. Buy them, offer a nice discount to ATV owners, take over streaming. And give Netflix the kind of funds they really need to take it to the next level. And all those people who get an ATV? Where do they spend money? How does that app ecosystem go then? You get the picture. A good chance to own the living room in that scenario.

The have the the interface and the OS, they need the content and a good gaming controller. That's the living room: games, apps, TV, movies—boom.

edited October 2016

512ke · October 26, 2016 12:30AM

If Apple had great original series and movies content, available to stream only on Apple devices, that would provide a compelling reason to people to buy Apple hardware.

Could Apple create compelling original series and movie content?

Yes, if they bought Time Warner or another company....

Would it justify the cost? Netflix just took out another loan (800 million dollars in this case) to finance its original content, and the company barely turns a quarterly profit.

apple113 · October 26, 2016 1:01AM

Apple should go all out and buy The Walt Disney Company. Disney is by far the leading content creator in the world right now. Apple and Disney share very similar PE ratios. And the deal would be mutually beneficial, Apple would get the leading content provider on which to build its Apple TV streaming service and compete with the likes of DirecTV Now, while at the same time branching out into different sectors of growth with the iPhone hitting max growth. Meanwhile, Disney is in a very strapped position, they're too big to be aquired by anyone other than Apple or Google, and they're too small to make a massive aquisition that would make a significant impact to their distribution channels and allow them to compete in the rapidly changing media landscape.

paxman · October 26, 2016 1:10AM

welshdog said:

daven said:

Why not just create a monthly rental option in iTunes that has many of the same viewing options as Netflix or Amazon Prime?

Licensing the shows would be a problem if already contracted to other players. Plus an Apple created channel would not have the original content the Netflix has produced to great success. If Apple wants to be in this space, they have to create content like everyone else. That is the current trend.

Someday consumers will have to have 15 different subscriptions to be able to see all the shows they want. Insane.

'If Apple wants to be in this space' - that is the question. Apple is spending its time looking and thinking, as yet undecided.

dasanman69 · October 26, 2016 1:49AM

ireland said:

Big picture the Apple Music efforts thus far are non-existent. They are fun little additions to Apple Music, but not the reason people subscribe. An apps documentary coming to a music service? I don't get it. Apple, please acquire Netflix. They understand new content like no one else and have the best distribution channel in the business. Take 1/4 of your war chest and solve this problem and give Apple TV the one thing it's missing.

Apple TV is missing Netflix?

xtradatrade · October 26, 2016 4:33AM

ireland said:

daven said:

ireland said:

Big picture the Apple Music efforts thus far are non-existent. They are fun little additions to Apple Music, but not the reason people subscribe. An apps documentary coming to a music service? I don't get it. Apple, please acquire Netflix. They understand new content like no one else and have the best distribution channel in the business. Take 1/4 of your war chest and solve this problem and give Apple TV the one thing it's missing.

I don't get why people want Apple to buy Netflix. Why not just create a monthly rental option in iTunes that has many of the same viewing options as Netflix or Amazon Prime? It would cut in to iTunes daily rentals but maybe not as much as one would expect as a lot of people,just watch a movie on their Netflix account if it is available.

Netflix has the kind of streaming customer base Apple can only dream of. They have a huge head-start in this game. Netflix is the name in streaming. Every show or indi movie wants to be on Netflix. But perhaps most important of all, not only do Netflix have a huge head start when it comes to new content creation, but they seem to understand new content creation: this is key. They know what they are doing. It's the missing piece for Apple TV. Buy them, offer a nice discount to ATV owners, take over streaming. And give Netflix the kind of funds they really need to take it to the next level. And all those people who get an ATV? Where do they spend money? How does that app ecosystem go then? You get the picture. A good chance to own the living room in that scenario.

The have the the interface and the OS, they need the content and a good gaming controller. That's the living room: games, apps, TV, movies—boom.

Netflix has a talented group no doubt but they are waaaaaay over priced. A much better buy with an equally good team would be Lions Gate, much cheaper and could help fuel their own subscription platform rollout. At this point it's better to build their own and acquire companies that can help it become the next Netflix.

If they were willing to pay a ridiculous $3B for Beats then they can buy Lions Gate for $2.9B.

The other acquisition or a large minority stake Apple should look at is, Tesla.

rayz2016 · October 26, 2016 5:35AM

Tart apple. said:

I'm not a big Tim Cook fan. He is slowly running aapl into the ground through sure bordom and lack of vision. Innovate or go to the Kodak graveyard. Even IBM is attempting to innovate in different arenas such as the cloud and still their employees have a thick layer of dust. If innovation is a bad watch then may I remind apple that once the pet rock sold millions but was soon forgotten by the chia pet and the clapper. Yes I hAve an apple computer I like it, but even there the keyboard is annoying.

Timmy, innovate or resign and if you truly have no ideas because you are too busy shaking your ass around political views and promoting life styles, may I suggest a M&A maybe snap chat or anything. Don't be the pink version of Balmer, accounting is not innovation. Jobs was a visionary, with ideas that were way ahead of the curve. Today's apple is like watching milk slowly sour. Now go do something, anything, good luck.

Ladies and gentlemen! I give you … the missing link!

g-news · October 26, 2016 6:50AM

They're just not interested in making computers anymore.

spamsandwich · October 26, 2016 7:01AM

anantksundaram said:

Content creation or acquisition would be a ridiculous move for Apple, IMHO. It is completely outside the domain of its expertise. The day something like a Time Warner happens -- if it ever does -- is the day that I sell my AAPL holdings.

I think Eddie Cue should go if he pursues this kind of nonsense.

I think AI is misinterpreting -- or interpreting too broadly -- Cook's comments.

If Apple were to hire Bob Iger to head up an independently run entertainment division of Apple, I'd be 100% behind such a move. Otherwise, I agree they currently have no clue in this area.

techno · October 26, 2016 10:34AM

Tart apple. said:

I'm not a big Tim Cook fan. He is slowly running aapl into the ground through sure bordom and lack of vision. Innovate or go to the Kodak graveyard. Even IBM is attempting to innovate in different arenas such as the cloud and still their employees have a thick layer of dust. If innovation is a bad watch then may I remind apple that once the pet rock sold millions but was soon forgotten by the chia pet and the clapper. Yes I hAve an apple computer I like it, but even there the keyboard is annoying.

Timmy, innovate or resign and if you truly have no ideas because you are too busy shaking your ass around political views and promoting life styles, may I suggest a M&A maybe snap chat or anything. Don't be the pink version of Balmer, accounting is not innovation. Jobs was a visionary, with ideas that were way ahead of the curve. Today's apple is like watching milk slowly sour. Now go do something, anything, good luck.

You have some decent points that might be heard if you didn't throw in your subtle homophobic references.

spamsandwich · October 26, 2016 1:57PM

sog35 said:

Apple113 said:

Apple should go all out and buy The Walt Disney Company. Disney is by far the leading content creator in the world right now. Apple and Disney share very similar PE ratios. And the deal would be mutually beneficial, Apple would get the leading content provider on which to build its Apple TV streaming service and compete with the likes of DirecTV Now, while at the same time branching out into different sectors of growth with the iPhone hitting max growth. Meanwhile, Disney is in a very strapped position, they're too big to be aquired by anyone other than Apple or Google, and they're too small to make a massive aquisition that would make a significant impact to their distribution channels and allow them to compete in the rapidly changing media landscape.

I like this idea WAY better than buying Netflix

Disney actually has some hard assets - ESPN, Starwars, ABC, ect

I'm sick and tired of Cook wasting shareholders money on the stupid buyback. Apple has wasted almost $200 billion on the buyback that only benefited day trading Wall Street. Could have used that money to buy Disney instead.

Bottom line is Cook needs to be fired.

Bob Iger working at Apple would be a dream come true. He has more vision at Disney than almost any CEO working.

cali · October 26, 2016 5:02PM

A few days ago I said Apple should create content if they don't acquire Time Warner. They'll have no choice if they want to be in this space in the future.

The people who say Apple should buy Netflix are right except it's way overpriced.

Disney+Apple is a dream but wouldn't a Disney acquisition be over $100Billion?

spamsandwich · October 26, 2016 5:46PM

cali said:

A few days ago I said Apple should create content if they don't acquire Time Warner. They'll have no choice if they want to be in this space in the future.

The people who say Apple should buy Netflix are right except it's way overpriced.

Disney+Apple is a dream but wouldn't a Disney acquisition be over $100Billion?

It'd probably have to be cash and stock swap if it ever happened.

anantksundaram · October 26, 2016 6:13PM

sog35 said:

Apple113 said:

Apple should go all out and buy The Walt Disney Company. Disney is by far the leading content creator in the world right now. Apple and Disney share very similar PE ratios. And the deal would be mutually beneficial, Apple would get the leading content provider on which to build its Apple TV streaming service and compete with the likes of DirecTV Now, while at the same time branching out into different sectors of growth with the iPhone hitting max growth. Meanwhile, Disney is in a very strapped position, they're too big to be aquired by anyone other than Apple or Google, and they're too small to make a massive aquisition that would make a significant impact to their distribution channels and allow them to compete in the rapidly changing media landscape.

I like this idea WAY better than buying Netflix

Disney actually has some hard assets - ESPN, Starwars, ABC, ect

I'm sick and tired of Cook wasting shareholders money on the stupid buyback. Apple has wasted almost $200 billion on the buyback that only benefited day trading Wall Street. Could have used that money to buy Disney instead.

Bottom line is Cook needs to be fired.

The only thing that is stupid is the suggestion that $200B returned to the pockets of the company's shareholders is a waste. You have no idea of what the counterfactual would have been if it had not been repurchased, or even worse, spent on an acquisition.

Tim Cook says Apple is interested in both content creation and ownership

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