“Apple is considering following in the footsteps of Netflix, Amazon.com, Google and even Spotify by producing its own entertainment content, according to a report by Variety,” Miriam Gottfried writes for The Wall Street Journal. “That had investors in Netflix particularly worried Tuesday; the shares fell around 8%But when it comes to original content, the fact that everyone is doing it doesn’t make it any easier to do well, even for mighty Apple.”
“Despite its Internet-video lead, Netflix is still a long way from becoming HBO. And that is despite plans to spend about $3 billion on content this year and almost $5 billion next year, with a chunk of that going to originals,” Gottfried writes. “Amazon, which is spending $1.7 billion on content this year and has been hiring from Hollywood, has had only a few critically acclaimed shows.”
“Granted, a few billion might be chump change for Apple. But money clearly isn’t the only ingredient for content success,” Gottfried writes. “Indeed, Apple may be using the threat of original content as leverage in negotiations with media companies for its planned TV service.”
Read more in the full article here.
MacDailyNews Take: The leak to Variety could certainly have been a leverage move, but as we wrote earlier today, “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.”
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