Apple Secretly Pursuing Deep Push Into Original Television Programming

[AppleScruff1]

First, when they sell someone's content, they get 30% cut as a distributor. Assuming the thing sells. Which it mostly does and it is not Apple's business.

Second, when they will sell their own content, assuming similar prices, their margin will be HIGHER than 30%. Because they absorb some costs and can eliminate excessive margin on produce. They still will get 30% even if discount their own production (as distributors).

Finally, about the content that sells. Thats why you go to A-list to create content that sells, like Swift's iTunes exclusive album. It is not made by Apple, but Apple could produce such albums in future, its not big deal and with hundreds of millions or so iTunes accounts, plus deals to Amazon, Netflix, HBO, it could easily recuperate initial outlays of 5 billions. They even could tie it to its hardware, like iPod-exclusive Beatles album or something like that.

5 billions is a huge money for ALL Hollywood studios even combined (most of them will struggle to produce one megahit, costing up to 200 million movie in a year), but 5 billions is a peanuts for Apple. it is just like 2.5% if their idle CASH sitting somewhere in Ireland and earning probably around 5% in interest only. Using only half of interest revenue from that cash holdings Apple could produce 25 MEGAHITS a year if it wanted. Or more. But probably they will prefer cheaper TV series, in which case they could produce up to 100 TV shows annually each costing 50 million dollars and having 10 episodes each and still be in black, cause Apple employs best writers, directors, other A list creators. And with good effort those megahits would have return of around 100% (like spending about 200 million on Harry Potter movie, spend another 100 million on ads, earn about 500 billion (even more for HP movies), be in black and still get profit of around 100-200 million dollars.

With profit on megahits, you can easily subsidize up to 20 family movies, kids movies which cost far less and don't bring much revenue, and 2-3 flops, when needed. In 3 years, Apple could produce more entertainment streams than Hollywood and Bollywood combined. That could fill 5-10 TV channels running almost only Apple's shows of highest quality.

And it all could be iTunes/AppleTV exclusive.

Do you really want an Apple dominated world?

 

[kas23]

Similar things could probably said about who would need a show about "Girls" or a 90's show about basically nothing a just a life of some guy and his friends.

I don't understand. Please explain. How could a show about "girls" or a shows about friends be construed as a thinly veiled attempt to sell an ecosystem or hardware?

Doesn't it bother you that the 2 "original content" shows we hear about are primarily geared towards selling the Apple lifestyle? It's like if Starbucks started making TV shows and their best ideas were a show about the benefits of caffeine or the wonderful lives coffee growers enjoy in Africa.

Think of the TV shows you watched tonight. Were they selling you on watching their show again or trying to sell their latest electronic device or music subscription service?

 

[mantan]

"...Apple is said to be seeking deals with "triple A-list" talent to create a full roster of shows to put it on par with Netflix and Amazon, both of which have successfully launched popular original television shows..."

Took 'em long enough. I recommended this five years ago. The next stage is Apple becoming an ISP. (I also predicted that five years ago.) Why? If you don't control both the content and the means of delivery, you lose to those who do.

Apple as an ISP? Holy crap, that's as scary as Apple as a wireless company.

Do we really want the company that charges a premium on everything and wrings every single nickel out of their customers and skimps at every turn to be the middle man too? No thank you.

 

[C DM]

I don't understand. Please explain. How could a show about "girls" or a shows about friends be construed as a thinly veiled attempt to sell an ecosystem or hardware?

Doesn't it bother you that the 2 "original content" shows we hear about are primarily geared towards selling the Apple lifestyle? It's like if Starbucks started making TV shows and their best ideas were a show about the benefits of caffeine or the wonderful lives coffee growers enjoy in Africa.

Think of the TV shows you watched tonight. Were they selling you on watching their show again or trying to sell their latest electronic device or music subscription service?

I was responding more to the first part of the comment. But going beyond that, I'm not sure that a show about early days of Dr. Dre is necessrily selling an Apple lifestyle in any way just because he is asociated with a company Apple bought. Apps are somewhat closer to that of course, but they exist in the world of Android and Windows as well and are fairly ubiquitous these days, so various people can be interested in the show whether or not they have anything from Apple.
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Apple as an ISP? Holy crap, that's as scary as Apple as a wireless company.

Do we really want the company that charges a premium on everything and wrings every single nickel out of their customers and skimps at every turn to be the middle man too? No thank you.

So basically what most of ISPs and middle men actually are and have been for a long time?

 

[StoneJack]

Do you really want an Apple dominated world?

Thats a good question. I don't mind living in Apple ecosystem, I got iCloud, macbook, iPhones, Macs, iPads, and that makes me very productive and efficient. I would be interested in Apple-produced entertainment though.

 

[mantan]

I was responding more to the first part of the comment. But going beyond that, I'm not sure that a show about early days of Dr. Dre is necessrily selling an Apple lifestyle in any way just because he is asociated with a company Apple bought. Apps are somewhat closer to that of course, but they exist in the world of Android and Windows as well and are fairly ubiquitous these days, so various people can be interested in the show whether or not they have anything from Apple.
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So basically what most of ISPs and middle men actually are and have been for a long time?

Sure - but Apple is going to charge a 'premium' for the pleasure of servicing us....no thanks.

I have little faith in Apple to somehow do it better and every belief that it would end up costing more money.

Apple needs to get back to what they used to do well instead of growing into complicated markets (TV, automobiles, etc) they have no business in.

 

[igorsky]

Do you really want an Apple dominated world?

I want to use products that help improve my life in some way. If those products happen to come from Apple, then so be it.
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I have little faith in Apple to somehow do it better and every belief that it would end up costing more money.

Even though historically Apple has shown a consistent ability to do it better at pretty much everything they've attempted? Ok.

 

[MarsViolet]

I want to use products that help improve my life in some way. If those products happen to come from Apple, then so be it.
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Even though historically Apple has shown a consistent ability to do it better at pretty much everything they've attempted? Ok.

Cloud services, for instance.…