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Apple Looks To Enter the SVOD Space

It looks as though Apple may be looking to move into the subscription video on demand (SVOD) space with their own original programming business. The business would likely start with a focus on television shows then move into making feature films. While the SVOD space is growing, and crowded, Apple has an incredible amount of cash on hand and could likely make a significant impact in the space.

A recent Wall Street Journal article reports that Apple is already in talks with various studio’s producers and marketers regarding licensing content to offer as part of their monthly Apple Music service. Apple predicts that they will be offering original content by the end of 2017.

To be clear, Apple is looking to enter the SVOD original content space, but not to the same extent that industry titans like Amazon Video and Netflix, who each spend billions on producing original television shows and movies. Apple is no stranger to producing original content. Many consumers may remember the series Apple produced about Dr. Dre , not to mention the fact that Apple recently acquired a series based on James Cordon’s extremely popular Carpool Karaoke show. Apple is even said to have been one of the final bidders for the former Top Gear stars after they left the BBC; Amazon ended up winning that bid producing what is now the Grand Tour. Regardless, the signs that Apple is ready to get serious about original content are out there.

Apple Music’s man rival is, of course, Spotify, who already announced plans to produce 12 original series in the coming year. Any original content that Apple can create will be invaluable in the race for becoming the streaming music market leader.

This moves comes at a time where Apple is frantically searching for a new source of revenue as iPhone profits continue to drop generation after generation. While Apple Music has half the subscribers of Spotify (about 20 million vs 40 million), a few pieces of popular original content could quickly change the tide.

While there are no official announcements from Apple yet, all signs point to an announcement regarding an Apple SVOD service by the end of 2017. In such a competitive market, Apple will have to make a strong statement to successfully enter the space, but, as we all know, Apple is a company with plenty of brand cache. One things for certain, if Apple does enter the space that’s great news for consumers.

Sources:

  1. http://variety.com/2015/digital/news/apple-eyes-move-into-original-programming-exclusive-1201582020/
  2. http://www.forbes.com/sites/shelbycarpenter/2017/01/12/apple-report-original-tv-movies-westworld/#2bf0e80c5d7f
  3. http://www.wsj.com/articles/apple-sets-its-sights-on-hollywood-with-plans-for-original-content-1484217007

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