Why Apple might feel compelled to get into original content

“Ever since the success of Netflix’s ‘House of Cards,’ digital video companies have been racing to create their own shows,” Michelle Castillo reports for CNBC. “But, if Apple’s reported foray into original programming is indeed true, it could mark a new major player in the digital production landscape.”

“The trend of streaming video companies investing in original content is only increasing as more audiences cut the cord and turn on mobile screens and digital devices. Having a platform that simply hosts existing movies and TV shows is not enough to distinguish one company from the rest,” Castillo reports. “Apple’s entering the arena may signify its belief that the streaming video industry is only going to grow even larger and that it wants a piece of the revenue.”

“Strategy Analytics Director of Digital Strategy Mike Goodman likened the move to create exclusive content to what HBO did to make itself a powerhouse,” Castillo reports. “Having an award-winning series exclusively can boost subscription rates. ‘As you progress on the growth curve, (relying on licensed materials) is a limiting factor because your audience is set,’ said Strategy Analytics Director of Digital Strategy Mike Goodman. ‘If you really want to be a breakout and you really want to grow, you need original content.””

Read more in the full article here.

MacDailyNews Take: Or it just be a negotiating tactic to finally get the broadcast and cable TV networks on board Apple’s Internet TV plan.

SEE ALSO:
Apple’s Internet TV service could be ‘Netflix on steroids’ – September 1, 2015
Just because Apple may be getting into original content doesn’t mean it can produce good shows – September 1, 2015
Apple made ‘audacious bid’ for Top Gear trio of Clarkson, Hammond and May, but lost out to Bezos’ Amazon – September 1, 2015
Apple’s move into content creation could devastate Netflix and Amazon
Tuesday, September 1, 2015

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

9 Comments

  1. Apple already makes the best ads, producing their own shows and movies is the logical next step.
    Apple, Amazon and Netflix are set to be the modern vertically integrated entertainment companies like the old Hollywood studios of days gone by. Producing content and owning the method of viewing (Movie Theater or iPhone) means a better viewing experience.
    Over the long term this puts Apple at an advantage over Amazon, Netflix and Hulu I say.

  2. What do you think those massive data centers are all about? Streaming Apple Music? In part, yes. But taking over the living room, a central part of the Apple strategy for a long time, involves way more than just a device. Skating to where the puck is going to be again, Apple recognizes that compelling content is the REASON.. not the thing you use to get there. Let’s all go on a vacation so we can take a plane ride! Let’s go to a restaurant so we can drive in the car! The shift into content creation has been inevitable since the first Apple TV was conceived. The problem with content is monetizing it at a level that makes sense. When a single episode of television can cost 1 to 2 million, in a fractured viewing marketplace the cost per view has to remain sustainable. Apple can afford to buy production companies, and the best directors and writers to create content that will be locked into their proprietary systems much like Showtime and HBO do now. But the cost of entry will be lower since they will be able to provide “thin bundles” with groups of packages, ala carte that give you only what you want.

  3. Apple Ads today aren’t great. If Apple wants to go into original content (just rumours now) Apple should show they can do ads first.

    This is what I posted yesterday on another article :

    “Before people one star me, quickly in two seconds i believe you could think of famous old Apple Campaigns like 1984, Mac/PC guy, Think Different…. can you in the same speed name 3 famous recent Ad campaigns? Don’t think so.

    Even if you could vaguely think of them do you believe they have the same ‘impact’ on the General Public as the old ones? Any of them have gone into the general consciousness (go ‘viral’ they call it now) like Mac PC guy, 1984? When Justin Long was in Die Hard audiences called him the ‘Mac Guy’, when critics talk about the ‘greatest ads’ they still discuss 1984 (its taught in advertising school).

    Apple Hardware is A , Apple marketing which used to be equal to Apple Hardware is now c+ .”

    —–
    All the great Apple Ad campaigns were done under Jobs leadership. There have been a small number of good ads after that but on the whole it has been just adequate not spectacular

    With Jobs , CEO of Pixar (half a dozen of the best animated movies ever) original content might have been a breeze , without it CAUTION SIGNS on the door. About ‘outside talent’ , another caution, can TC handle them deal with OUTSIZED media Egos ?, think Beats acquisition multiplied ….

  4. Hang on here: Netflix BOUGHT ‘House of Cards’ as a DISTRIBUTOR. That’s a hell of a lot different from actually producing content. Of course Apple would be compelled to DISTRIBUTE content. They already do. Moving into distributing exclusive content is an obvious next step.

    IOW: What’s silly is Apple becoming a producer. Not gonna happen.

    1. Well they did take ad production in-house, and they’re forever going vertical in every other conceivable way, so why not Bring in writers and directors to blow the doors off the Hollywood clown car? Hiring gangsta artists like they did in their Beats acquisition was way more radical than making original movies and tv series. Today’s Apple has become a badass contender. They may backfire with some of their ginned-up vehicles and drop a few shell casings on the street, but they command everyone’s attention and that’s what counts in mass markets. Yeah, there used to be Apple Computer, Inc., but this is an animal that thinks different.

  5. watch youtube video “ipod+itunes commercial:hiphop” from 2003 and then watch the new Apple music ad. A difference like night and day. Pure excitement VS boring. Unexpressive faces VS expressive, happy, lively vibe. Bright graphic visuals VS gloomy lighting. Infectious quality music soundtrack VS annoying, boring drumbeat. The in-house ad production experiment or whatever it is is simply not working. Are the guys who did the Mac VS PC and itunes+ipod campaigns still around? I keeping banging away on this because I know how great Apple marketing could be again and i hate to see how bad it has become. A+ players should be hired for Apple marketing, not C’s and D’s.

    1. These Apple music ads are the face of Tim “Apple Ballmer” Cook’s Apple. Boring, bland, tasteless, lifeless. Apple used to have a soul, a vision, a direction, a purpose. Now it is just a ship, coasting until it hits the iceberg. Steve Jobs set it in motion, Tim Cook is the incompetent captain that is going to crash it into an iceberg, and sink it. He is just rearranging deck chairs, before it eventually sinks and he gets on his golden lifeboat. Ive, Cook’s lapdog, is the musician playing music to calm people as the ship sinks. Quite fitting honestly. Hopefully the board woes and fires these two incompetent buffoons, before the damage is too great to undo.

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