“Apple Inc.’s $1 billion investment to buy and produce original TV programming pits the technology giant against Spotify, not Netflix Inc. or Amazon.com Inc. — at least for the time being, according to analysts at RBC Capital Markets,” Trey Williams reports for MarketWatch.

“Apple’s designated $1 billion content spend is small compared with Netflix’s $6 billion, Amazon’s $4 billion and Time Warner Inc.-owned HBO’s $2 billion,” Williams reports. “Lead analyst Amit Daryanani wrote in the note that it makes more sense to see the investment as potentially taking share away from Spotify.”

Williams reports, “Daryanani wrote that if Apple is able to add seven million to eight million paid Apple Music subscribers, it would recoup the $1 billion investment in three years, and given the double-digit growth in music streaming and the roughly 20 million subscriber gap between Spotify and Apple, upside to market share gains could be significant.”

Read more in the full article here.

MacDailyNews Take: Halting baby steps at first (Planet of the Apps) and then dipping a toe in the water (current $1 billion budget) before breaking into a full run!

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