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What’s Apple Want with Original Content?

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Apple is eager to enter the original content business

Apple (AAPL) has recruited two successful Hollywood television executives from Sony—Jamie Erlicht and Zack Van Amburg—in an effort to enter into the original content business. Eddy Cue, Apple’s Senior Vice President of Internet Software and Services, stated: “Jamie and Zack are two of the most talented TV executives in the world and have been instrumental in making this the golden age of television.”

The two will join Apple in new positions as co-heads of video programming worldwide. They have been at Sony since 2005 and have helped triple the size of Sony’s original programming. The duo managed big hits on Sony productions, including Breaking Bad, Damages, and The Crown.

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The online content segment: challenging, but promising

The graph above shows how Netflix’s (NFLX) subscribers have grown over the years. Amazon’s subscribers have also seen similar growth. This suggests that while competition is stiff, online streaming is a swiftly growing sector.

Apple has already produced its own original content—for example, with Planet of the Apps—but the signing of the Breaking Bad executives suggests that the company wants to make even bigger strides into this vertical.

Still, any entry into the competitive business of online content has its own set of hurdles. Apple faces stiff competition from the likes of Netflix (NFLX), Hulu, and Amazon (AMZN). It’s a good thing that Apple has an advertising platform and wide distribution from devices that run its iOS.

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