Apple To Produce Movies, Makes Apple Music More Competitive

Apple is looking to produce movies and TV shows for its Apple Music service, according to The Wall Street Journal, all perhaps to distinguish itself from competitor Spotify. And that is probably just it -- and no more.

Apple’s move doesn’t appear to be the second coming of a CBS, ABC, Fox, or Netflix and Hulu. Not even close.

Technology/digital device companies are getting into the content business -- movies and TV have been the topic of discussion in media and entertainment circles for years. But few real results have come to fruition.

Now take a step back: Look at TV channel distribution. Apple has all but abandoned plans to become another digital/virtual provider of TV networks -- a next-gen cable operator. Comcast has no worries here.

For a long time, it seemed to make sense to have content, distribution and digital device manufacturing under one roof. Only Sony has delved into all three -- but with uneven results.

The move by Apple, mostly now a digital device manufacturer, should be viewed therefore in a narrow context. Apple sees its Apple Music -- a $10 a month service -- as ready to take on Spotify. The motive may be to sell even more new iPhones and iPads in future years.



Some of this started months ago, when Apple agreed to launch video-based music-oriented content, such as “Carpool Karaoke,” a popular segment on CBS’ “The Late, Late Show with James Corden.”

If you want to think more broadly for Apple -- if you dare -- when it comes to content production, perhaps only one new media distribution/technology company, which has successfully moved into the big leagues in recent years, comes to mind: Netflix.

Does Apple want to spend $6 billion in TV/movie development costs like Netflix will in 2017? And even then, it would need the right TV-movie development executives -- as well the strong stomach when it comes to notorious, unpredictable failure.

Apple has the bucks on hand to do battle -- some $216 billion in cash lying around, according to a number of estimates. But is this really their thing? Putting together a digital pay TV service of linear TV networks -- somewhat closer to their technology-centric business -- hasn’t worked as well.

So what’s left? Apple aficionados have one hope: Apple TV, its on-demand pay TV service, continues to score steady growth. But don’t think any farher ahead.

1 comment about "Apple To Produce Movies, Makes Apple Music More Competitive".
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  1. Eric Johnson from Arizona State , January 23, 2017 at 9:23 p.m.


    As an avid music listener and subscriber of Apple Music myself, I thoroughly enjoyed reading your article.

    I am amazed at how quickly Apple Music has developed throughout these last couple of years and have never had an issue pin-pointing an exact album that I wanted to find. 

    Many other streaming outlets such as Tidal and Spotify, seem to have less variety, due to licensing agreements between artists. I believe this has to do with the profitably which makes Apple a preferred outlet to artists due to the profitability from streaming, as well as giving fans the option to support and purchase the music digitally. I can attest for this as Apple Music has helped me discover many new incredible albums, which I have ended up buying in the past year on iTunes.

    I am confident Apple is more than capable of carrying their success over with them into the movie streaming business. I think with the right partners, they have more than enough capital to buy out many original streaming-based series from major competitors like Netflix and Starz.

    I firmly believe that with their current budget, they would be more than capable of building the largest streaming service in the market with by far the largest variety of shows/movies to view. I also think that a lot more films and television shows would be likely to license with Apple, if they allowed for the movies/shows to be bought through iTunes, similar to the set-up of Apple Music.

    Overall, Apple always seems to be on top of the game with achieving popularity among consumers. I don't think we are too far off from seeing Apple dominate  streaming services of popular television shows and movies, especially with a generation that is hooked on popular culture.

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