Apple’s next $10 billion frontier is content creation

“Diversification is key, even at Apple Inc.,” Tony Owusu reports for TheStreet. “While the company’s ubiquitous iPhone is clearly its bread and butter, Apple has opportunities to bolster its bottom line through its services businesses, specifically content creation, according to an RBC Capital Markets research note on Monday, June 25.”

“‘AAPL will further differentiate their services offering by enhancing original media content and increase the stickiness of their install base. AAPL will fixate on quality vs. quantity, but original content will differentiate its offering and enable AAPL to bundle music+content for a higher average selling price,” analyst Amit Daryanani wrote,” Owusu reports. “Apple has a $1 billion budget for content acquisition and production in 2018, according to RBC, which it has spent on projects from Steven Spielberg, Jennifer Aniston and Reese Witherspoon.”

Owusu reports, “RBC said it believes a combination of Apple Music subscribers and monetizing original content could represent a $10 billion to $12 billion annual run-rate business which would contribute between 25 cents and 75 cents to the company’s earnings per share.”

Read more in the full article here.

MacDailyNews Take: Content is going to be crucial for Apple and, if they can use it to drive device sales (while kicking the Android usurper in the teeth in the process), they’ll reap untold multiples of their content production investments.


  1. They need their version of YouTube, Offer a better monetization rate for switchers,
    how did they not see this a decade ago?
    Siri is search supposedly, How is Alexa better?
    If Apple started a good search engine, Google stock would plummet,

    1. youtube, google search etc. make money by selling customer/user data to advertisers.

      Apple with Tim Cook’s take on privacy can never make money with a Youtube or Search enterprise.

    2. Apple is totally stuck in its waning iPhone business. Apple should have bought DuckDuckGo years back if it ever wanted to challenge Google Search. Too late now. A search engine that data harvests consumers will always give back the best results by far. Privacy-breaking companies now basically rule and control the entire internet. Apple lost out hugely because almost no one cares about their online privacy. Zuckerberg completely beat every privacy faction out there. He’s a winner.

  2. Nice try, Apple. They’d better get creative as the stock has gone into a tailspin based on expected low iPhone sales. I sure hope Apple is buying back its own shares currently, for sure as heck, no big investors are. Apple shares are at a cheap cost and look to be heading even lower this year. The $1T market cap is long out of reach and now that mark truly belongs to Amazon’s completely unlimited growth, multiple businesses.

  3. Will wait and see, but not expecting anything memorable.

    It is genuinely difficult to do anything new in movies and television. No matter how hard Apple tries, they will produce stuff that looks pretty much like what viewers watch today.

    Apple will find it impossible to produce shows that deviate from “Apple values.” I doubt they would have allowed “Breaking Bad” to be made, for example. Television shows and movies will be evaluated by the answer to a question, “Does this make Apple look good?”

    And they will make nothing which challenges the federal government. The FBI will never violate the civil liberties of Americans. The Department of Defense will never bomb the wrong targets.

  4. The Content that Apple has announced so far seems like a big snooze fest and while it might garner some eyes, its not going to be anything big.

    They’d do far better then tossing $$ down the content rat hole, by keeping their product lines fresh, new Macs across the board, actually shipping the items they announce on time and in quantity.. and surprise us with something new that no one was expecting thats really cool.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.