Apple’s spending on original content
iPhone maker Apple (AAPL) has reportedly been spending aggressively on original content amid fierce rivalry from Facebook (FB) and Alphabet’s (GOOGL) YouTube to acquire original programming. According to TechCrunch, Apple has plans to spend more than $1 billion in original programming. Earlier Apple was expected to spend $1 billion in original content.
However, the spending still lags behind Amazon’s (AMZN) more than $5 billion investment in original content, according to Daniel Ives, the head of GBH Research.
Apple is launching more shows
Apple has been increasingly spending on original content and is expected to release original shows between March and the summer of 2019. Since October 2017, the company has made deals for 12 original shows. However, unlike Netflix (NFLX), Apple will restrict the number of series it puts out to focus on quality over quantity.
Further, Apple will distribute its series to customers through subscriptions. The shows might be available in Apple’s existing TV app, which currently organizes video programming from Prime Video, Hulu, CBS, Starz, Showtime, HBO, and others that require sign-in from a TV provider.
The company’s spending on original content and launch of new shows comes at a time where Walt Disney will also struggle to gain market share. Notably, Disney is rolling out its ESPN sports streaming service called ESPN Plus in mid-2018 and is offering another streaming service, which will stream content from Disney’s extensive library in 2019.
Customers have shifted towards low-priced online video streaming services, which has led to the fall of traditional pay-TV subscription providers. According to a Cisco Systems’ VNI (visual networking index) report, video is likely to account for 77.0% of all mobile data traffic by 2020 in the United States.