Apple Eyes Original Content, But Looks to Avoid Expensive Bidding Wars With Netflix and Amazon

[MacRumors]

Apple has shown a willingness to buy projects that can help promote its services, but its interest in acquiring original content remains tepid, according to The Information. The report claims Apple is not interested in getting into billion-dollar bidding wars over projects with rivals such as Netflix and Amazon.

Apple bought an unscripted TV series based on James Corden's highly popular "Carpool Karaoke" segment to promote Apple Music, for example, while it is also planning an original TV series called Vital Signs, described as a dark semi-autobiographical drama starring Beats co-founder and Apple executive Dr. Dre.

Meanwhile, Apple reportedly met with representatives for comedian Chris Rock earlier this year about a potential video deal, although the discussions did not lead anywhere and Rock ultimately signed a reported $40 million deal with Netflix to deliver two stand-up specials airing in 2017.

Apple's lack of original content is seen as a disadvantage for the company, potentially hurting its efforts to expand the Apple TV's market share.

Not having a slate of originals hurts Apple’s ability to differentiate its video-streaming offerings against rivals like Hulu, Netflix and Amazon, each of which now make their own shows that get them lots of attention, while also licensing reruns from TV networks. That could stymie Apple’s ability to increase market share for its streaming video device, the Apple TV, and lock more people into the Apple ecosystem.

Apple has sent mixed signals to Hollywood about its interest in original programming over the past few years, the report adds.

Apple has reportedly met with TV producers and Hollywood studios about developing original TV shows to offer exclusively on iTunes, but services chief Eddy Cue later said Apple is "not in the business of trying to create TV shows." Instead, he said Apple is willing to offer producers suggestions and guidance where possible.

Independent of its original content efforts, Apple has reportedly been getting more aggressive at landing movies for iTunes. The company was reportedly in discussions with the producers of the Michael Moore documentary "TrumpLand" very early in the process, for example, to secure an iTunes exclusivity window.

Apple got the right to offer “TrumpLand” on iTunes earlier than other online video services, in exchange for prominently promoting it on the iTunes homepage, according to a person involved in the discussions. Having Apple’s promotional commitment is significant enough to help get a movie financed, this person said.

Key players in Apple's content discussions are said to be Jimmy Iovine, along with Apple Music executives Larry Jackson and Robert Kondrk.

Article Link: Apple Eyes Original Content, But Looks to Avoid Expensive Bidding Wars With Netflix and Amazon

 

[Born Again]

apple please don't get into original content. no doubt you will censor the *&@@# out of it.

 

[macduke]

Chris Rock is a vampire. He is 51. Or maybe 151?

 

[Michael Scrip]

"Looks to Avoid Expensive Bidding Wars With Netflix and Amazon"

The weird thing is... this is where "television" is going.

The future of video content is on-demand streaming... not traditional TV networks.

If Apple doesn't want to play ball with Netflix and Amazon... then I have little hope for Apple in this space.

 

[Quu]

Honestly with the mountain of money Apple has they should just start producing original TV Shows already.

And if they make the shows in Ireland (like Game of Thrones is) they could spend some of that offshore money and avoid spending US made profits on it.

 

[pike908]

So long as Apple can make a zillion dollars off selling gadgets, why would they want to get into a bidding war for content??? Apple stock is valued on PE and cash flow. Not how many users, clicks, or eyeballs...

 

[BeefCake 15]

They could've had HBO and others with that TWC deal...

 

[ackmondual]

Looks to Avoid Expensive Bidding Wars With Netflix and Amazon"

Apple, just like any other business, wants to save money whenever possible, and get what they think is the best value for their dollar. Well... can you blame the consumer for doing the same thing? There are those who still get great value out of Apple stuff and will continue to buy such wares, but there have definitely have been folks jumping ship too!


Another takeaway is... Apple doesn't like competition. They'd rather get things on the cheap just like the rest of us!

 

[kevinkyoo]

Sorry Apple, but you need to actually invest in TV series now. You won't be able to get away with it, like making books worth a few dollars and selling them for $200-300.

 

[chasemac]

This article reminds me of this scene.

 

[kemal]

If you want to continue with TV as a hobby then by all means keep one toe in the water. But hey Apple, if you want to change the world you are actually going to have to get involved again. You only seem to be capable of making disposable, thinner and fewer ports.

 

[UltimateSyn]

They are trying to do too much.

 

[ackmondual]

Honestly with the mountain of money Apple has they should just start producing original TV Shows already.

And if they make the shows in Ireland (like Game of Thrones is) they could spend some of that offshore money and avoid spending US made profits on it.

[shrug] I'm guessing because they want to keep that mountain of cash? Even when you're exceedingly wealthy, you still need to be careful, as wrong business can really set you back. As far as original content goes, that doesn't seem to be a business with high of margins as they've dealt with.

 

[coolfactor]

Apple's lack of original content is seen as a disadvantage for the company, potentially hurting its efforts to expand the Apple TV's market share.

They are trying to do too much.

Agreed!

They state that they don't put market share first, but being distracted by this simply to increase market share is absurd! No wonder that their Mac product line is not seeing regular updates. They are spread too thin!

 

[JRobinsonJr]

Apple has a choice: either be a content producer... or a content distributor... or both. Given the level of competition in the market I would suggest that they first need to focus on distribution. The TV should be the center of our entertainment universe. Consumers do NOT want to have to switch devices to get content. Focus on making sure that every single producer has an outlet on the TV. Yes, this includes Amazon and Ultraviolet. Preferably Vudu. THEN they can compete with content.

 

[69Mustang]

This article reminds me of this scene.

This is a perfect visual facsimile for this article. Well done.

 

[jimbobb24]

Spend the money on making Apple TV work better with your existing products. Like better slideshows using iCloud Photos. The stuff no longer just works. The behavior I expect no longer happens instead some crazy broken stuff happens. Make Apple TV iCloud photo experience as good as it was in prior Apple TV versions and that would be a good start. I understand all these hiccups in a start up but the richest company in world?

 

[Quu]

[shrug] I'm guessing because they want to keep that mountain of cash? Even when you're exceedingly wealthy, you still need to be careful, as wrong business can really set you back. As far as original content goes, that doesn't seem to be a business with high of margins as they've dealt with.

HBO and all the other companies that make TV Shows do so for profit. As I'm suggesting Apple does.

They could spend Apple Europe's profits producing shows which then air in the united states where the profits would be made. It would be an easy way for them to launder money from Europe to the States without incurring corporate tax on the money, just the profits and with Hollywood accounting they could make out the shows made a loss.

 

[Digital Skunk]

THis is a bad idea. Just build computers and mobile devices Apple. Providing and streaming content will eat up those billions you've pocketed.

How about this: give us a solid upgrade to the iMac and Mac Pro, help LG make better looking displays, and improve your upgrade cycle on your hardware offerings.

That's not too much to ask for is it?

Oh and fix the little niggles that exist with iOS on the iPad Pro. You're so close to making it a solid laptop replacement.

 

[Zaft]

If they want to compete they will have to get into these bidding wars.

I have zero reasons to have an apple tv. My Xbox one is my main device that takes care of gamimg, streaming and even has a web browser.

I cant wait for the King in the High castle season 2 on Amazon video. What does apple have?

 

[Pakaku]

Apple bought an unscripted TV series based on James Corden's highly popular "Carpool Karaoke" segment to promote Apple Music, for example, while it is also planning an original TV series called Vital Signs, described as a dark semi-autobiographical drama starring Beats co-founder and Apple executive Dr. Dre.

Since Apple's idea of 'original content' seems to literally be nothing but fancy infomercial advertising, I really don't have any faith in what they're up to. (And remember those old rumours about advertisements inside OSX or something like that?)

Netflix seems to be more interested in making actual TV shows for the sake of being entertainment.

 

[DEMinSoCAL]

$40M for two episodes? I'd probably not watch them just to protest the ridiculous amount of money Netflix is paying.

 

[Zaft]

$40M for two episodes? I'd probably not watch them just to protest the ridiculous amount of money Netflix is paying.

Netflix is only streaming. Thats their businesse, what do you expect them to do? They use their money on content, shocker I know.

 

[LethalWolfe]

Sounds like the only original content they are interested is extended commercials for their products/services.

Not how many users, clicks, or eyeballs...

Exclusive content means more people shopping at the iTMS, buying AppleTVs, etc., which translates into more people giving Apple money and original exclusive content, in the long run, has greater monetization potential (assuming it's good of course). This is why Amazon, Hulu, Netflix, YouTube, etc., are all making their own original, premium content. Content from third parties will always ebb and flow as contracts expire but Netflix is always going to have House of Cards, Amazon is always going to have Transparent, HBO is always going to have The Wire, etc.,.

The downside to creating your own content is the financial risk if it doesn't do well.

 

[ackmondual]

Another thing... doesn't the content on iTunes count as "original content"? Or is this a matter of Apple wanting to get more content to that?