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

[thekeyring]

It's fascinating how with "competitors" like Netflix, they're happy to promote them. Or WhatsApp - a big competitor to iMessage in some ways - they allow it to appear like a proper phone call on the iOS 10 lock screen. Yet Spotify - Apple have put a lot of resources into competing.
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So in other words, Apple is charging record amounts for their products but won't cough up a penny for decent original content? They're going to fail hard. Amazon and Netflix will kill them.

In the content space maybe, but I don't see Netflix making smartphones.

 

[sbuttler77]

-

 

[miniyou64]

This company is so unfocused now.

 

[Sylvan]

Want to grow your iTunes streaming business? How about not charging $20 for last-decades bargain bin movies, or actually applying a rental as credit toward the purchase of a movie if you decide you really liked it.

 

[jmgregory1]

I don't need Apple to create original video content. I'm often happy with the specials they do with music on iTunes, but the risk of creating garbage vs. great video content would likely cause them to spend huge amounts of money, wavering from their focused current path of hardware and the OS conduit to content. And I don't see Netflix or Amazon's original content as a challenge to Apple, because I can and do watch both on Apple product. Just because Amazon has a show I like isn't swaying me to buy one of their proprietary hardware.

 

[satchmo]

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.

Because Eddy Cue knows TV and producing content more than Hollywood studios?
Are we sure it's not the other way around?

 

[Gasu E.]

[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.

Apple isn't a person; it's a corporation, and it has a responsibility to try to make gobs of money for its shareholders. Sitting on a huge pile of money is not serving the shareholders' interest. They should give it back to the owners if they can't come up with something useful to do with it.

 

[robmille]

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

*censor

Just FYI

 

[darbus69]

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.

Getty Images​

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.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.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

COME ON APPLE, spend some of that war chest we've helped you accumulate. New TV app looks good but let's put some meat behind it. DON'T YOU SEE US WITH OUR WALLETS OPEN AND READY

 

[Admiral]

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!

Apple has doubled its workforce since 2011, and nearly quintupled its workforce over the last decade (since 2007). The company projects increasing its workforce by more than 40% next year. Given that the company is riding the products created in 2007, it's difficult to understand what all those additional people are doing.

 

[Alenore]

I don't understand why Apple would bother. Original content has nothing to do with what Apple does, where would it even fit in their eco-system? And anything they do produce would probably require you to have their crappy Music subscription.

Right, nothing to do with it except the iPads / aTV / iPhones and to a point macs, are mostly content consumption devices.
I wonder where it would fit on aTV or iTunes...

 

[panther quest]

translation: they're cheap

 

[Hustler1337]

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.

Amen to that.

Apple ought to look closer to home and focus on the current state of the Mac lineup before dipping their paws into original content.

 

[VMMan]

Remember when Steve Jobs responded to John Lasseter's request for more money to complete a Pixar promotional movie when Pixar was losing money?

"Just make it great."

Apple is insecure and lost.

 

[Cigsm]

Original content has nothing to do with what Apple does? Like iTunes or Apple TV?

I don't understand why Apple would bother. Original content has nothing to do with what Apple does, where would it even fit in their eco-system? And anything they do produce would probably require you to have their crappy Music subscription.

 

[TheMacDaddy1]

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...

That model wont work forever. Sales are down if you did not notice. First annual loss (YOY). iPad sales keep declining. Mac sales down 13% and highly doubt these new Macbooks that cost more and have all soldered in components is going to turn those sales around. The iWatch not exactly a run away success. Who knows if the iPhone 7 did better at launch than the 6s did?

The car play....gone? They long rumored TV..??? Unless they think that book is going sell more than iPad's next quarter what is Apple doing with that mountain of cash?

The future is looking like AI/Cloud/Streaming media. iCloud is not exactly known for being a strong cloud play. They could buy Netflix 5 times over. They SHOULD have bought TW and got HBO and all of the other content.

My confidence in Apple that goes back to my first Apple IIE through today is not feeling great right now.

 

[Tech198]

Originals would be good but if there anything like 'First run exclusives' count me out. Most of them u can only buy, with rental periods u may have well waited til they would appear available anyway.. Due to copyright holders and perhaps the only reason u can due "exclusives" but kind of a one sided affair.

 

[Chomp81]

Apparently Tim Cook has lost the plot....

Apple's business is not to be a producer, rather a distributor of other's people content through their hardware/software.

Netflix as an app, runs on Apple software (iOS, TVOS, etc...)

These changes of direction, the lack of innovation (and quality) in their core products, delays in production and declining quality in customer service are few of the reasons this company is losing its "magic"
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That model wont work forever. Sales are down if you did not notice. First annual loss (YOY). iPad sales keep declining. Mac sales down 13% and highly doubt these new Macbooks that cost more and have all soldered in components is going to turn those sales around. The iWatch not exactly a run away success. Who knows if the iPhone 7 did better at launch than the 6s did?

The car play....gone? They long rumored TV..??? Unless they think that book is going sell more than iPad's next quarter what is Apple doing with that mountain of cash?

The future is looking like AI/Cloud/Streaming media. iCloud is not exactly known for being a strong cloud play. They could buy Netflix 5 times over. They SHOULD have bought TW and got HBO and all of the other content.

My confidence in Apple that goes back to my first Apple IIE through today is not feeling great right now.

So business is crap, your solution is to diversify instead of improving your product line.... WOW!

 

[bbeagle]

Isn't (or wasn't) Beats 1 censored?

Beats 1 is a public radio station. All public radio stations are censored.

Other streams inside Apple Music can be censored or uncensored.
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https://techcrunch.com/2010/04/19/steve-jobs-android-porn/

That's not the same.

Most mainstream services block porn.

In fact, even the Playboy Channel censors content.

 

[MacUser2525]

That's not the same.

Most mainstream services block porn.

In fact, even the Playboy Channel censors content.

Of course only your approved methods of censorship do not count in taking into account whether there is/was censorship.

 

[CyberFriar]

Johnny Ive will be in charge of them and make visually stunning shows with no content or usefulness.

 

[bbeagle]

Of course only your approved methods of censorship do not count in taking into account whether there is/was censorship.

99% of everything is censored to some degree, so your comment makes no sense.

Every service out there censors child pornography. Are you 'okay' with that censorship?

 

[LethalWolfe]

Apparently Tim Cook has lost the plot....

Apple's business is not to be a producer, rather a distributor of other's people content through their hardware/software.

Netflix as an app, runs on Apple software (iOS, TVOS, etc...)

These changes of direction, the lack of innovation (and quality) in their core products, delays in production and declining quality in customer service are few of the reasons this company is losing its "magic"

Apple is a hardware company and the video streaming market has quickly become hardware agnostic. When Apple first launched the AppleTV it was a very simple way to get video from the Internet onto your TV (which was a bit of a PITA back then). Now watching Internet video on your TV is as easy as just turning it on. The old iTMS/iPod model doesn't work with the AppleTV (or even now for music given the rise of Spotify and Pandora).

If there is little-to-no difference between the video content offered by Apple, Amazon and Netflix then why would I buy an AppleTV as opposed to using the Amazon and/or Netflix apps that are available on the TV, video game console, blu-ray player and/or other set-top device that I already own? I agree that so far Apple has been a distributor and not a producer, but they have to come up with a way to differentiate their service offerings if they want to increase their hardware sales and being a producer would do just that (assuming the content is good of course).

So business is crap, your solution is to diversify instead of improving your product line.... WOW!

Apple diversifying into mobile devices seemed to workout okay for them. Improving products only goes so once you've saturated the market (or come close to it). What do you do when the majority of people that are going to buy product X have already purchased product X? Or when other tech eclipses/incorporates the niche product X fills? The iPod is a great example of this.

 

[Chomp81]

Apple is a hardware company and the video streaming market has quickly become hardware agnostic. When Apple first launched the AppleTV it was a very simple way to get video from the Internet onto your TV (which was a bit of a PITA back then). Now watching Internet video on your TV is as easy as just turning it on. The old iTMS/iPod model doesn't work with the AppleTV (or even now for music given the rise of Spotify and Pandora).

If there is little-to-no difference between the video content offered by Apple, Amazon and Netflix then why would I buy an AppleTV as opposed to using the Amazon and/or Netflix apps that are available on the TV, video game console, blu-ray player and/or other set-top device that I already own? I agree that so far Apple has been a distributor and not a producer, but they have to come up with a way to differentiate their service offerings if they want to increase their hardware sales and being a producer would do just that (assuming the content is good of course).



Apple diversifying into mobile devices seemed to workout okay for them. Improving products only goes so once you've saturated the market (or come close to it). What do you do when the majority of people that are going to buy product X have already purchased product X? Or when other tech eclipses/incorporates the niche product X fills? The iPod is a great example of this.

If you are a hardware/software company, and you can't find other ways to improve the viewing experience using your business model, except developing content for a hardware/software company, you're in deep, deep trouble...

If you're buying an AppleTV to watch Apple's exclusive content, the trouble is even bigger... When you have a full range of products and an ecosystem to play with.

It is not the same diversifying from a desktop to a laptop, to a mobile phone... it's the "same" product concept; piece of hardware, running an OS, having some "apps" or "programs"... Now you're becoming the "creator" of content, whole different ballgame; if you can't see the difference, well....

Tell me about a saturated market, when they sell more laptops than Dell or more phones than Android combined.... Apple is FAR away from being the market leaders in any of their categories in terms of volume.

 

[LethalWolfe]

It is not the same diversifying from a desktop to a laptop, to a mobile phone... it's the "same" product concept; piece of hardware, running an OS, having some "apps" or "programs"... Now you're becoming the "creator" of content, whole different ballgame; if you can't see the difference, well....

Apple leapt into the "whole different ballgame" market when they made an MP3 player, then when they launched the iTMS, then when they added movie downloads, then when they launched a cell phone... The natural progression for for video distributors (whether they are cable channels, broadcast channels or streaming services) is to start with licensing third party content and them moving to create their own content. It differentiates them from competitors and provides a more secure revenue stream (no worries about losing the content after the licensing deal runs out).

Dollars to donuts, if Apple started producing original content on par with HBO, Amazon, Netflix, etc., AppleTV sales would sky rocket. But, as we've both said, producing hasn't historically been Apple's MO. Even the long-rumored skinny bundle would help out. With the iPad and Watch not exactly doing gang busters it might be time for Apple to put more weight behind the TV and move it out of 'hobby' status.

As you noted, the majority of people have some flavor of Windows PC and an Android phone so how does Apple get those people to buy AppleTVs when they are outside of the Apple ecosystem? To do that they'll need to offer things that people can't get via other streaming services (beyond just the usual exclusivity window). iTMS was the 'killer app' for the iPod and that, plus taking it cross platform, is what allowed the iPod sales to explode. The iTMS in it's current state isn't a killer app for the AppleTV, and maybe it never will. I'm working under the assumption that Apple wants to really compete with streaming services and cable TV providers but maybe they don't.

Tell me about a saturated market, when they sell more laptops than Dell or more phones than Android combined.... Apple is FAR away from being the market leaders in any of their categories in terms of volume.

The majority of people in the US that will mostly likely buy an iPhone have already purchased an iPhone, and the growth in China hasn't panned out which is why Apple's sales are slumping. For better or for worse Wall Street rewards growth and after many years of amazing growth, thanks to the iPod, iTMS and iPhone, that ship seems to be running out of steam. All successful products run the same basic cycle which is why companies are always looking for the 'next big thing'.