Apple reportedly planning to Invest $1-billion Growing Films and TV
Apple Inc. intends to invest about $1 billion on programming in the next 12 months, intensifying efforts to compete with Amazon.com Inc. and Netflix Inc. in video streaming, according to individuals knowledgeable about the plan.
A new Los Angeles-based team, headed by former Sony Corp. television executives Jamie Erlicht and Zack Van Amburg, who have been hired in June, will create and purchase television shows and movies for Apple Music and other potential video streaming products, said the people, who asked not to be identified because the plans are personal. That the budget was reported by the Wall Street Journal Wednesday. An Apple spokesman declined to comment.
Apple has accelerated its drive into movie within the year as it attempts to double revenue from its services business, which includes products like the App Store and Apple Music by 2020. It introduced the reality shows ‘Planet of the Programs’ in June and ‘Carpool Karaoke’ . Executive Jimmy Iovine told Bloomberg News in April that Apple would launch as many as 10 shows by the year’s end.
While represents an increase it’s significantly less by Amazon and Netflix for content. Netflix has said it will spend $6 billion on programming this season, and JPMorgan Chase amp; Co. analysts estimate Amazon’s cost will run about $4.5 billion.
Apple has also hired Matt Cherniss, who until recently was president of Tribune Media Co.’s WGN America cable network, to head development. Cherniss reports to Van and Erlicht Amburg, who in turn report to Apple services Eddy Cue. The group is currently hiring one of the people said.