Apple Music on iOS 10, with Senior VP Eddy Cue. (credit: Andrew Cunningham) As the battle to create original content for online video services continues, we get a glimpse into Apple’s plans for the coming year. According to a report from The Wall Street Journal , Apple has a budget of $1 billion to spend in 2018 to “procure and produce” original content. The iPhone maker could acquire and produce up to 10 shows next year with this money, which will be largely left in the hands of new Apple hires Jamie Erlicht and Zack Van Amburg. Erlicht and Van Amburg are former presidents from Sony Pictures Television that moved to Apple in June to oversee video content strategy and production. The $1 billion budget signals how serious Apple is about boosting its original programming, the newest of which lives on its Apple Music subscription service. This is Apple’s first major push into original content, but $1 billion less than the money spend on content by rival companies. HBO spent about double last year on content (it reportedly costs $10 million to produce one episode of Game of Thrones ), and Netflix may spend upwards of $6 billion this year. Apple’s starting budget is similar to Amazon’s when it first got into original programming in 2013 with Prime Video; Amazon could spend $4.5 billion on original content in 2017. Original programming is the way to go, as it has proven to be a big driver in the growth of streaming services. Netflix’s business benefited immensely from original hits like House of Cards , Orange is the New Black , and Stranger Things . Those kinds of shows—scripted comedies and dramas—are expensive to produce, and we’ve seen Netflix’s annual budget for original programming increase over the past few years to accommodate that. Apple’s first original series, Planet of the Apps and Carpool Karaoke , both just became available to Apple Music subscribers, and critics’ reviews have been mixed. Read 2 remaining paragraphs | Comments
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Apple going all-in on original programming, to the tune of $1 billion a year
Mitch Lowe, a founder of Netflix, has a crazy idea. Through his new startup MoviePass, he wants to subsidize our film habit, letting us go to the theater once a day for about the price of a single ticket. From a report: Lowe, an early Netflix executive who now runs a startup called MoviePass, plans to drop the price of the company’s movie ticket subscriptions on Tuesday to $9.95. The fee will let customers get in to one showing every day at any theater in the U.S. that accepts debit cards. MoviePass will pay theaters the full price of each ticket used by subscribers, excluding 3D or Imax screens. MoviePass could lose a lot of money subsidizing people’s movie habits. So the company also raised cash on Tuesday by selling a majority stake to Helios and Matheson Analytics, a small, publicly traded data firm in New York. Theater operators should certainly welcome any effort to increase sales. The top four cinema operators, led by AMC Entertainment, lost $1.3 billion in market value early this month after a disappointing summer. Read more of this story at Slashdot.