Apple Is Ready to Invest $1 Billion in Original Video Content

Apple preps $1bn war chest, adds Cherniss

As per a report by The Wall Street Journal, Apple has earmarked $1 billion for developing, acquiring and producing original TV content.

The report further elaborated that Apple's total sum to be spent on the production of content is half of what HBO spent previous year. Apple's SVP of Internet Software and Services Eddy Cue hired former Sony Pictures Television presidents Jamie Erlicht and Zack Van Amburg to run all aspects of worldwide video programming.

Meanwhile, early reviews of Apple's second original show, Carpool Karaoke: The Series, which debuted last week, have also been lukewarm. That's a budget that begins to approach those of dedicated content creators like HBO, which spent just around twice that past year on its own shows. The market for streaming original content is a bit crowded at the moment, but if Apple can drum up a hit, it could go a long way in solidifying the company as a streaming contender.

Apple could announce more details in September, when the company is expected to reveal the next iPhone, Apple Watch and a new Apple TV box capable of streaming 4K content. Considering Netflix and Amazon have had head starts and bigger budgets, Apple will need so much more to milk its video offering. The duo has subsequently hired former WGN America president Matt Cherniss to oversee series development at Apple, the Journal reports.

In June, Apple picked up two Sony TV execs to help with the original programming initiative. It is a half of HBO's spend, slightly less than a third of the BBC's spend and less than a quarter of Amazon's $4.5 billion investment.

While Apple's rumored original content budget is measuring app to what Amazon spends, it is far less than what Netflix pumps into content productions.

As the battle to create original content for online video services continues, we get a glimpse into Apple's plans for the coming year.

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