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Apple plans to take $1-bn bite in original TV shows and films

Apple has accelerated its push into video over the past year as it seeks to double revenue by 2020

Alex Webb | Bloomberg 

Apple plans to take $1-bn bite in original TV shows and films

Inc plans to spend about $1 billion on original programming in the next 12 months, intensifying efforts to compete with Amazon.com and Netflix in video streaming, according to people familiar with the plan.

A new Los Angeles-based team, led by former Sony Corp television executives Jamie Erlicht and Zack Van Amburg, who were hired in June, will produce and buy television shows and for Music and other future products, said the people, who asked not to be identified because the plans are private. The Wall Street Journal reported the new budget earlier Wednesday. An spokesperson declined to comment.

has accelerated its push into video over the past year as it seeks to double revenue by 2020 from its services business, which includes products such as Music and the App Store. It released the reality shows ‘Planet of the Apps’ in June and ‘Carpool Karaoke’ earlier this month. 

Executive Jimmy Iovine told Bloomberg News in April that would release as many as 10 original shows by the end of the year. While the budget of about $1 billion, which the people said is still being finalised, represents an increase in spending for Apple, it is significantly less than the outlays by Netflix and Amazon for original content. Netflix has said it will spend $6 billion on programming this year, and JPMorgan Chase & Co. analysts estimate Amazon’s expense will run about $4.5 billion.

Bloomberg

First Published: Fri, August 18 2017. 03:21 IST
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