Now that Apple is diving into the content business with Apple TV+, Annie Gaus for The Street wonders if Apple should “go full Hollywood” and buy up a studio?
Apple announced that the service will cost just $4.99 per month, much less than expected, when it launches on Nov. 1. It’s also offering one year free to customers who purchase any iPhone, iPad, Mac or Apple TV.
To some investors, Apple buying up a Hollywood studio seems like a logical move. With $102 billion in the bank as of last quarter, Apple has the money… However, Apple’s cash hoard and relative lack of wholly-owned content doesn’t necessarily add up to a studio purchase, according to independent streaming media analyst Dan Rayburn.
The reason? Apple’s streaming plans — and how they fit into its overall business — are very different than those of Disney, Netflix, or other media giants such as AT&T’s WarnerMedia.
Rayburn noted that at just $4.99 per month, many users will continue with the service even if there’s just one or two shows that they like. And by fall 2020 — when some free trials will be due to expire — we’ll know more about what content is best or most popular and what areas, if any, could use further investment on Apple’s part.
MacDailyNews Take: Yes, Apple’s strategy is much different than most other players in streaming subscriptions. Apple is looking for quality over quantity. Think “early HBO,” not Netflix.
Those who can wrap their heads around Apple’s massive cash mountain and the company’s unparalleled ability to generate cash can clearly see who the winner will be. The most talented producers, writers, directors, editors, actors, etc. are attracted to exactly what Apple has and makes in vast abundance: Cash. The king.
Like bears to honey, it’s happening already. – MacDailyNews, January 3, 2018
Apple has the money required to catch up and even surpass all competitors very quickly and they can accomplish it without buying a studio or even production companies. — MacDailyNews, April 3, 2018