Apple is spending a ton of money on original streaming content

by Danny Zepeda | August 16, 2017

Apple is investing a reported $1 billion over the next year to acquire and produce original content.

According to The Wall Street Journal, Apple’s investment may lead to the development of up to 10 new shows. Its intent is to create quality programs like the ones coming out of companies such as HBO.

The jump to original content is already underway for Apple. Right now it has two shows streaming on Apple Music—Carpool Karaoke and Planet of the Apps. This next invest will just continue to bolster its TV offering to something much more robust.

The shift to making original content for Apple can be dated back to the rise of streaming and the decline of movie and TV show rentals and purchases. This was a healthy business for Apple with iTunes as recently as five years ago. Apple was reportedly making 50 per cent off rentals and sales but that number has now dipped below 35 per cent. And with the growing popularity of streaming, the business has declined even more.

Instead of letting the times pass it, Apple is jumping on the streaming and original content bandwagon.

Apple’s $1 billion investment is just the latest gigantic sum companies are investing in original programming. HBO spent $2 billion on original programming last year, while Amazon spent $1 billion in 2013 when it first jumped into original content. Netflix has been more aggressive, reportedly investing $6 billion in its own content this year alone.

The moral of the story is that original TV content is very expensive.



Danny Zepeda

Danny's interest in writing began with tech, which influenced his career path in college. After graduating from Vanguard University, he began to...