Apple to move into original programming and compete with video streaming companies
Apple Inc is reportedly moving into the original programming business to compete with Netflix and other video streaming companies.
According to an exclusive report from Variety, the iPhone maker, based in Cupertino, California, has been under talks with Hollywood executive in the past several weeks to come to an agreement on producing entertainment content.
Apple aims to start offering the programming services by next year. But it has plans to deliver the said service via the internet this year. Apple plans to develop and produce divisions that would provide long-form content designed for online streaming.
Apple will start hiring new employees for the new division in the next months. There is no exact information if the entertainment service will focus on movies, TV series, or both.
Reports of Apple going into the entertainment business have been around since February as Re/code reported that the giant tech company is into conversations with unspecified TV networks to create channels that are the same with Dish's Sling TV service.
It will be a service that gives users a limited number of networks through broadband at a price cheaper than the normal cable or satellite price.
There are reports that Apple made a bid to secure the "Top Gear" stars after exiting BBC earlier this year. But Amazon eventually got the big for Jeremy Clarkson, Richard Hammond, and James May.
Prospects of Apple entering the Hollywood business has been around since decades ago since Steve Jobs partnered with the studios to show movies and TV shows on iTunes.
This move to enter the entertainment business would create a strong competitor that would divert viewers from the traditional pay-TV to the video streaming industry. Getting into the TV and movies would be cheap for Apple with $200 billion on the corporation's balance sheet. It is still unclear if Apple is going to structure itself like Netflix.
Apple can also grow its content in independent films. Apple is also making a great job with its content strategy in its music streaming business.