Apple may produce original TV and movie content
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Apple has reportedly become the latest technology company to plan a foray into producing original television and movie content.
Sources told that Apple is preparing to produce original content for its $10 per month music streaming service, to help it better compete against Spotify.
Apple Music has been testing the water with some documentary content about musicians but now plans to make the jump into premium programming.
According to the report, Apple hopes its content could prove to be as internationally popular and critically loved as programming such as Netflix’s Stranger Things.
But the company does not appear to be planning to spend the vast sums that would be required to become a direct competitor to Netflix and comparable services or premium cable networks such as HBO. Instead, Apple has firmly set its sights on Spotify, which currently has around twice the paying subscribers as Apple Music, at around 40 million to around 20 million.
Apple has been exploring directly entering the entertainment business for years, but nothing has yet eventuated, the report states.
But with the smartphone market rapidly maturing and competition intensifying in key markets such as China, the company needs to find replacement revenue streams to compensate.
Questions & Answers
Q.What is Apple's primary motivation for producing original TV and movie content?
What is Apple's primary motivation for producing original TV and movie content?
Apple aims to help its music streaming service better compete against Spotify. This move seeks to attract and retain subscribers, especially as the smartphone market matures and competition increases in key areas.
Q.How will Apple's content strategy differ from major competitors like Netflix or HBO?
How will Apple's content strategy differ from major competitors like Netflix or HBO?
Apple does not appear to be planning the vast spending required to directly compete with Netflix or premium cable networks. Its focus is more on enhancing its music service's appeal rather than becoming a standalone entertainment giant.
Q.What is the current subscription gap between Apple Music and its main rival, Spotify?
What is the current subscription gap between Apple Music and its main rival, Spotify?
Spotify currently has around twice the paying subscribers as Apple Music. Spotify has approximately 40 million subscribers, while Apple Music has around 20 million, indicating a significant difference in market penetration.
Q.Has Apple explored entering the entertainment business before this reported plan?
Has Apple explored entering the entertainment business before this reported plan?
Yes, Apple has been exploring directly entering the entertainment business for years. However, nothing concrete had materialised until this latest report, which details plans to produce original content.
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