Apple spending big on six original productions

Apple (AAPL) is getting ready to launch a streaming service later this year. While the tech giant will likely have to spend billions of dollars in the next few years to have a library similar to Netflix’s (NFLX), the company has the financial muscle to do so without raising debt.

The New York Post reports the company is financing six original shows or movies at $5 million–$30 million per project, with an eye on winning an Oscar. The company’s Oscar push has been reportedly inspired by Netflix’s Oscar win with its original movie, Roma.

Apple faces stiff competition

Apple has not yet said much about its subscription service, Apple TV+. However, one thing that is clear is the competition it could face. According to eMarketer, the average number of video-on-demand subscriptions per US household reached 2.8 last year. The subscription service could also squeeze Apple’s margins as the company spends on content to compete with Netflix. That said, the subscription service could boost Apple’s service revenue and negate its shrinking iPhone sales.

Latest articles

Apple (AAPL) investors have had a roller coaster week. Apple stock has lost just under 2% in a week, ending on August 23, 2019.

Competition taking a toll on Netflix as its share of US subscription video streaming market keep falling as rivals gain ground.

Crude oil production continues to rise, and oil prices remain at $50. Despite that, US energy stocks aren’t getting investors’ interest.

Apple stock fell 4.6% as the US-China trade war intensified today. China warned of tariffs on more US goods, followed by Trump's tweeted response.

In response to new tariffs from China and President Trump's tweets, the market tanked to session lows on Friday. The DJIA nosedived more than 600 points.

Coverage on Cresco Labs has increased from seven analysts in July to nine in August. Six analysts favor a “strong buy,” and three recommend a “buy.”