Apple to invest a billion dollars on original video content

The company earlier focused in renting shows and movies through iTunes saw its business shrink by 30 percent since 2012 after the rise of subscription based streaming services

August 18, 2017 / 04:56 PM IST
The logo of Apple is seen at a store in Zurich, Switzerland November 22, 2016.    REUTERS/Arnd Wiegmann - RTSUCB7

The logo of Apple is seen at a store in Zurich, Switzerland November 22, 2016. REUTERS/Arnd Wiegmann - RTSUCB7

Apple will invest approximately $1 billion to acquire and produce original TV shows over the next year, said a report by The Wall Street Journal. The investment could lead to the production of as many as ten new shows by the company.

The new decision by Apple according to The Verge is in view of the lucrative online market that is emerging for original shows. The company earlier focused in renting shows and movies through iTunes saw its business shrink by 30 percent since 2012 after the rise of subscription based streaming services.

The market though is already crowded with big players in the fray. HBO has already spent $2 billion last year on original shows. Amazon, when it made its initial in roads to the market in 2013 spent around $1 billion. While other reports indicate that Netflix is planning to spend $6 billion. With an average budget for an episode of popular series Game of Thrones costing $ 10 million, the investment by Apple is not a huge one.

While other reports indicate that Netflix is planning to spend $6 billion. With an average budget for an episode of popular series Game of Thrones costing $ 10 million, the investment by Apple is not a huge one.

Apple is not entirely alien to the market. It has already produced some original shows. These include the reality show Planet of the Apps and popular programs such as Carpool Karaoke. However, the company is yet to create a major hit that could help make it big in the original content market.
first published: Aug 18, 2017 04:17 pm

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