Apple is reportedly investing $1 billion in buying and producing its own video content in an attempt to compete with video streaming providers and TV channels.
The Wall Street Journal reports the investment could result in up to 10 new shows from the company, citing “people familiar with the matter”.
The original report has now been corroborated by Bloomberg, which further reports that a new Los Angeles-based team will be in charge of producing and buying new shows and film content.
Former Sony television executives Jamie Erlicht and Zack Van Amburg are said to be leading the team.
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Though the $1 billion amount seems like a substantial amount, the WSJ states it’s about half of what HBO spent on production in 2016.
According to the figures in the report, one episode of Game of Thrones costs $10 million to produce, with comedies coming in much cheaper at $2 million per episode, and drama averaging a cost of $5 million per episode.
What’s more, it’s claimed Netflix is preparing to spend more than $6 billion in 2017, so if this latest venture for Apple is successful, the company will likely up its investment in the coming years.
Apple already has some original content, recently producing its reality show ‘Planet of the Apps’, and ‘Carpool Karaoke,’ neither of which have been all that well-received.
But this latest investment, if accurately reported, will put the company in a much better position to compete with the likes of Netflix and HBO.
The current crop of Apple-produced shows is provided through Apple Music, and though it isn’t clear yet where the new shows will be hosted, it would make sense for Apple to launch a new streaming service if it’s to take video content seriously.
Apple is yet to confirm the reports as accurate, but is said to be hiring “aggressively” for the new production team.
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