RBC: Apple’s $1 billion TV investment helps company compete with Spotify in near term

“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!

The magic and misdirection of Apple’s streaming strategy – August 18, 2017
Apple wants to spend $1 billion on 10 original TV shows over the next year – August 16, 2017
Former WGN America president Matt Cherniss joins Apple in latest TV push – August 15, 2017
Rivals leaving Apple behind as Apple TV remains stuck in a test pattern – August 8, 2017
Apple’s so-called TV ‘strategy’ continues to be an embarrassing joke – June 30, 2017
Apple poaches Sony TV executives to lead major push into original content – June 16, 2017
Hulu and NBCUniversal ink expansive agreement to bring top channels to Hulu’s upcoming live TV streaming service – May 1, 2017
YouTube to unveil virtual cable bundle for $30 to $40 a month – February 28, 2017
Stalled talks with Ron Howard highlight Apple’s content confusion – February 16, 2017
Apple vowed to revolutionize television; currently prepping an unremarkable 4K Apple TV instead – February 16, 2017
Apple TV: Still not ready for prime time – February 15, 2017
Apple hires Amazon’s Fire TV head to run Apple TV business – February 8, 2017
Apple’s new TV app shows just how painfully behind Apple is – December 14, 2016
Are you ready for 4K TV? Apple TV isn’t. – November 28, 2016
Apple has no idea what they’re doing in the TV space, and it’s embarrassing – November 3, 2016
Hulu inks deals with Fox and Disney, adding ESPN, Fox News and more to forthcoming live service – November 1, 2016
Apple’s Eddy Cue: Nope, we don’t want to be Netflix – October 20, 2016
Google signs up CBS for planned web TV service to debut in early 2017; close to deal with 21st Century Fox – October 20, 2016
Apple’s Eddy Cue: Nope, we don’t want to be Netflix – October 20, 2016
Apple’s Eddy Cue alienated cable providers and networks with an assertive negotiating style – report – July 28, 2016
Here comes á la carte programming – without Apple – July 13, 2016
Apple TV 4 is a beta product and, if you bought one, you’re an unpaid beta tester – November 5, 2015


  1. Say what you will, but Plants of the Apes was one of the best TV shows of the year, possibly of the last 5 years.

    Apple knowed what they were doing and they built the key: the foundation: to High Ratings.

    By integrating their breathtaking new Plante of the Aps into AppleMusic, they are definately going to take away people from Spotify.

    Think about it. If you use Spotify, how are u supposed to watch apple’s new Billion$ investemts in tV? Get it together Spotify this is the future of musics.

  2. We traveled to Russia last month and my wife tried to pay for a meal at Marriott with her chip card and they required a pin. Her card didn’t have a pin and they couldn’t figure out how to process it, so she quickly set it up for ApplePay. Once she got beyond the set up procedure she saw why I speak so highly of using ApplePay. It became her go-to method for the rest of the trip. I wish more vendors and restaurants in the US accepted it.

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