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Apple Should Invest More Than $1 Billion in Original Content

August 16, 2017 20:13 PM UTC
- Updated February 18, 2020 05:08 AM UTC

Apple announced that it will invest $1 billion in original video content, but that’s not enough to compete with Netflix and HBO.

Transcript
It's a huge opportunity, but will it be successful? I think that it has a very good chance of succeeding. They're putting a billion dollars down. Place a billion dollar bet down on here, and they've also poached two Sony executives to lead the effort. They're going to make as many as ten shows. And honestly, all they need to have is one hit, and things can take off for them .>> Yeah, but Apple has a long history of poaching big name execs who then spin out and aren't successful at the company. It has very specific culture and part of that is hardware DNA not software. Apple software is pretty much terrible. Nobody likes using iTunes and we all know that. And they have no content and media DNA and I think that much is clear. If look at the show that they've already launched including Planet of the Apps, which is pretty much a joke, and Carpool Karaoke, which has gotten really terrible reviews They haven't made one of those zeitgeisty shows that you really need to put yourself on the map. All right, all right. So, maybe their shows aren't doing so well. They're terrible. They're terrible. But they got these guys in the pipeline, and honestly, they've got a really really big opportunity here. They've got declining market share when it comes to iTunes. Like you mentioned, maybe it's not the greatest interface. Mm- hm. But they wanna win people back, and Apple is trying to grow its services business Double to it $ 50 million and honestly like this putting this a little bit of money in this area, it seems like a wise idea for them. Yeah but. The potential up side. I think what you're saying here is a little bit of money. Apple has $ 250 billion dollars on its balance sheet and there's always running a billion to me that tells me. That they are not that serious about that. But this is kind a look a contingency plan, and sure if it works out okay. And like Netflix this is do or die for them. They're competing against the company that is like this is their core thing. And then so I that's another reason why I don't think Apple is going to be succesful as a content producer. That's fair. But if we look at HBO, I mean HBO spends of, $ 2 billion a year, so Apple's gonna spend half of that. But they really only need to get a Game of Thrones- like success. I mean HBO has Game of Thrones and everybody watches that, literally everyone. But if you're Game of Thrones do you wanna go to HBO or do you wanna go to Apple? [ SOUND ] Well, maybe Apple. All right, we are out of time. Come to fortune. com for more tech debate. [ MUSIC ] [ BLANK_AUDIO ]