“Apple funding content creation could remove the advantage Netflix and Amazon have enjoyed, as well as the leverage of traditional TV and motion picture studios,” Mark Hibben writes for Seeking Alpha.
“Assuming that Apple can hire the requisite talent, Apple will probably have a very good chance of bettering the content quality of Netflix,” Hibben writes. “Apple will be able to attract the best talent and field the best offerings because of its huge resources… This content will almost certainly go into a streaming video service for the current and next generation Apple TV systems.”
“Apple distributing its own exclusive content also offers a couple of other advantages. The first is that production can take place overseas, so that it can be funded by the offshore component of Apple’s cash, about 90% of the total. The other advantage is that marketing costs can be very effectively limited,” Hibben writes. “Netflix and Amazon have probably a year’s breathing space. Depending on how secretive Apple is about their content efforts, Netflix and Amazon investors may go on blithely assuming that their companies’ positions will go unchallenged. Once Apple’s content efforts are revealed, I expect the Netflix stock bubble (and to a lesser extent Amazon’s as well) to burst.”
Read more in the full article here.
MacDailyNews Take: There is a finite amount of top flight producers, writers, directors. The company with the deepest pockets (and the willingness to reach into them and dispense the contents) wins this game.
SEE ALSO:
Why would Apple want to make their own movies and TV shows? – September 1, 2015
Apple exploring entry into original entertainment production – August 31, 2015