August 29, 2019
With Apple rolling out its upgraded Apple TV+ in November, the cash-rich tech giant is reportedly set to beginning spending big dollars on original content.
New data from Ampere Analysis contends Apple will spend more than $6 billion on original content for its new subscription streaming video service — six times what it has spent in previous years, according to The Financial Times.
Apple has announced 36 original titles for the new service, an uptick in content spending that ranks it among Disney/Fox, NBC Universal/Comcast/Sky and Viacom/CBS.
Notably, Apple’s burgeoning spending is expected to top Netflix’s $2.4 billion original content spend in 2019, according to Ampere.
“Apple’s significant increase in content expenditure highlights its commitment to the streaming video space, and its willingness to go head-to-head with the industry’s biggest spenders,” analyst Daniel Gadher wrote in a note.
Gadher believes Apple’s content spending underscore’s the company’s strategy to emulate Netflix, Amazon Prime Video and Hulu’s programming platforms.
With Disney+, HBO Max, NBC Universal’s unnamed service, and Jeffrey Katzenberg-led Quibi all entering the market, Gadher contends “high value” exclusive content will become key.
Disney has said it would spend about $1 billion on Disney+ original content, increasing to $2.5 billion by 2022. It has announced 43 original titles for the service.
Ampere expects Disney will spend $5 billion on original Disney programming plus the additional original spend from its acquired Fox assets.
Quibi, the mobile-only streaming platform concentrating on short-form video has committed $1.1 billion in original content in its first year. It has commissioned 44 new titles.
“The ability of the platforms to produce quality and differentiated content will be integral to success in a market where Netflix, Amazon and Hulu are already entrenched,” Gadher wrote.