Apple Plans To Spend $1 Billion On Original Content

Apple preps $1bn war chest, adds Cherniss

Apple preps $1bn war chest, adds Cherniss

Ex-studio and United States network veteran Matt Cherniss has joined former Sony execs Jamie Erlicht and Zack van Amburg at tech giant Apple, which is set to invest US$1 billion in original and acquired programming.

Today's report follows stories this month from India saying that Apple is in the mix to spend about $1 billion for the film and music content library of Eros Group, the country's largest movie producer. The company might have a long way to go till it reaches Netflix's success, but then again, it's got a lot of cash on hand with its latest earnings report revealing that Apple has more or less $250 billion in its accounts. The extent of their control over the shows Apple will produce is unclear.

Original content could entice people to use Apple Music if the videos end up being included on the service. Although Apple has not given an updated figure for the number of the iTunes accounts since 2014, CEO Tim Cook did specify that year Apple had about 800 million iTunes accounts. This is, however, close to what Amazon had spent, before venturing into original content. It was reported earlier this year that Apple's original series won't directly compete with Netflix, at least not yet. According to the Wall Street Journal, making TV shows is an expensive venture with comedies costing around $2 million dollars per episode while a drama can fetch up to $5 million dollars per episode. "Planet of the Apps", an app-focused version of "Shark Tank" with celebrity mentors like Jessica Alba and Will.i.am, was mocked by critics. The company is also producing a scripted TV series starring Dr. Dre.

USA protestors topple Confederate statue in North Carolina
The bronze statue had stood outside an old courthouse building, that now houses local government offices, since 1924. The statue, unveiled in 1909, depicts a soldier known as "Old Joe" standing with his gun in his hands.

Apple Inc. will need at least one huge hit to emerge as a prominent player.

Apple's move into original programming is part of a broader shift in the industry.

All the action in the premium subscription video services space puts the challenges facing traditional TV into even higher relief with falling ratings and advertisers looking for lowered rates for linear TV ad spots. Netflix and Amazon already enjoy big leads and have a far bigger budget for programming.

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