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.