Apple execs looking to recruit TV & movie producers for 'transformative' change - report
Senior Apple executives have been talking to big-name Hollywood TV and film producers in the past two weeks in a bid to recruit them, a new report claims, as part of what could be a more ambitious video strategy.
Meetings in late February reportedly included ones between Eddy Cue -- Apple's senior VP of Internet Software and Services -- and Paramount Pictures, as well as Sony's TV and film divisions, according to the New York Post. An anonymous executive quoted by the paper said he had the impression Apple had transformative plans underway, and wasn't simply looking to buy TV shows.
"They talked to Sony and Paramount last week," an unspecified source told the New York Post. "They are preparing something big."
Apple is currently exploring more original video content, but in the form of material for Apple Music like "Planet of the Apps" and "Carpool Karaoke." Recruiting skilled producers would likely be a way of bolstering these efforts.
Apple has, however, periodically been rumored to be after its own streaming TV service, which could be aided by Netflix-style original content. Negotiations are thought to have died off because of hardline demands by Apple and resistance by content providers.
Also in February, a report revealed that Apple was involved in serious talks with Imagine Entertainment, the production company owned by Ron Howard and Brian Grazer. Apple was said to have been interested in possibilities like "first look" distribution, investment in the studio, or even buying the entire company.
Some outside parties like CNBC's Jim Cramer have called on Apple to buy Netflix, which would give it an instant leap into subscription video. Netflix has a market cap over $58 billion however, which might force Apple to delve deep into its cash reserves to pay, and/or issue more debt sales.
Meetings in late February reportedly included ones between Eddy Cue -- Apple's senior VP of Internet Software and Services -- and Paramount Pictures, as well as Sony's TV and film divisions, according to the New York Post. An anonymous executive quoted by the paper said he had the impression Apple had transformative plans underway, and wasn't simply looking to buy TV shows.
"They talked to Sony and Paramount last week," an unspecified source told the New York Post. "They are preparing something big."
Apple is currently exploring more original video content, but in the form of material for Apple Music like "Planet of the Apps" and "Carpool Karaoke." Recruiting skilled producers would likely be a way of bolstering these efforts.
Apple has, however, periodically been rumored to be after its own streaming TV service, which could be aided by Netflix-style original content. Negotiations are thought to have died off because of hardline demands by Apple and resistance by content providers.
Also in February, a report revealed that Apple was involved in serious talks with Imagine Entertainment, the production company owned by Ron Howard and Brian Grazer. Apple was said to have been interested in possibilities like "first look" distribution, investment in the studio, or even buying the entire company.
Some outside parties like CNBC's Jim Cramer have called on Apple to buy Netflix, which would give it an instant leap into subscription video. Netflix has a market cap over $58 billion however, which might force Apple to delve deep into its cash reserves to pay, and/or issue more debt sales.
Comments
Netflix developed Roku, and quickly spun it off, literally hours before it was to be released as a Netflix media player. Considering Apple offers Apple Muisc on multiple platforms, its likely they won't be short sighted with Apple Productions, either. However, there may be some exclusivity initially which will drive customers to the Apple platform if they want to see the programming. With over a billion device users, there's certainly a large enough audience to build sufficient buzz to draw the curious from other platforms, if only for the inexpensive cost of an Apple TV.
Go Eddy!
Apple is a product company first and foremost. Their services business as it exists today, with exception of Apple Music to a degree, is pulled along by the product. Apple is not a services company, but they have a great services business. So any new services should be thought about in that manner.
What about Apple Music, you say? Good question. I think that for Jobs, and then for Apple as a result, music was something more cultural that they felt they should be involved in with the advent of the iPod. There was a problem to be solved there too. That lead Apple into dominating (legal) online music sales for over a decade. That helped grow the iPod business as well as the iPhone business in the early years. Apple Music is a continuation of music business in the new paradigm.
I am not sure that "video" has as much culture impact as music does, at least as it pertains to influence in the product sphere. There is a "ton" of new video content (movie, TV, indie) produced and consumed every year, but I don't think most of it is as influential as music. The problem in video is not the same as in music.
That said, doing some original content with at least the goal to do something different (or have it consumed differently perhaps better to say), does keep Apple at the table and more involved. Perhaps more able to shape how things go. At that can be accomplished for much less than $90B it might take to buy Netflix today.
SERIOUS mission drift that will be gone in 5 years or less. What an embarrassingly suicidal waste of money and resources. Viewers are way, WAY too fickle to make this worthwhile.
I certainly get what you’re saying, though. If traditional visual media content really wants to modernize itself, the means by which it’s made available to consumers has to change.
Apple has the cash to create original content.
But they're not doing that. There's tons of IP Apple can purchase. Disney would be a better deal than Netflix.
Very simply, without leading class products, Apple would not have a revenue generating services business. The reverse is not true - Apple can have products without earning any services revenue. Based on what we see at product releases and WWDC, Apple's priority focus is on designing the best products, which we see can then lead to services revenue. Apple management doesn't sit around thinking about how they can independently grow the services business so products can start to take a back seat.
The day that Apple management start focusing more on services than on product is the day that Apple is doomed...