Apple Sets Aside '$1 Billion War Chest' for Hollywood Programming

Apple has earmarked $1 billion to acquire and produce original television content over the next year to compete with the likes of Netflix and Amazon, the Wall Street Journal reported on Wednesday.

The plans could see Apple procure and produce as many as 10 television shows, according to people familiar with the matter, thanks to a budget figure that is about half of what Time Warner's HBO spent on content last year and around the same amount as Amazon spent in 2013, after it announced its own move into original programming.

Apple TV Content
The budget will reportedly be controlled by Hollywood veterans Jamie Erlicht and Zack Van Amburg, who were hired by Apple in June from Sony to oversee content acquisition and video strategy. Apple also recently hired former WGN America President Matt Cherniss to oversee development of the company’s worldwide video unit. Cherniss previously worked with Erlicht and Van Amburg to bring the Sony shows "Underground" and "Outsiders" to WGN.

Mr. Van Amburg and Mr. Erlicht have begun meeting with Hollywood agents and holding discussions about shows Apple could acquire, the people familiar said. Mr. Matt Cherniss has movie experience, having worked as a production executive at Warner Bros.

WSJ notes that not only will Apple have a fight on its hands going up against rivals already heavily invested in original content, but it will also have to avoid jeopardizing its 15 percent cut of subscriptions from its App Store for services like Netflix and HBO GO.

As for the cost of programming, this can vary widely, from more than $2 million an episode for a comedy to more than $5 million for a drama, while high-end shows such as "Game of Thrones" can cost over $10 million per episode to produce.

For its video service to gain traction, Apple needs at least one hit, according to the people familiar with the plan who spoke to the newspaper. The company's initial video efforts include "Planet of the Apps", which was launched in June on Apple Music, and "Carpool Karaoke," which was launched last week. Apple has not revealed ratings for the shows but both have been criticized by reviewers.

Apple is hoping its efforts in original programming will bolster the appeal of iTunes movie rentals and other offerings through the store. Last year, iTunes generated an estimated $4.1 billion in revenue, but its share of the movie rental-and-sales market has declined to less than 35 percent from 50 percent in 2012, according to the report.

Top Rated Comments

frozen220 Avatar
64 months ago
In related news, Apple has announced a renewal of CarPlay Karaoke for 93 more seasons.
Score: 15 Votes (Like | Disagree)
imronburgundy Avatar
64 months ago
Is anyone subscribing to Apple Music to watch Apple TV shows? I doubt it.
Score: 11 Votes (Like | Disagree)
Sheza Avatar
64 months ago
Well so far everything they have produced has been complete crap.

Would be a good idea to add an extra few zeroes, make it $10bn and actually hire decent people the shows, as the production AND plot of the stuff we have seen so far is boring and cheap.
Score: 8 Votes (Like | Disagree)
JaySoul Avatar
64 months ago
$1bn is a drop in the ocean compared to the competition.
Score: 7 Votes (Like | Disagree)
apolloa Avatar
64 months ago
Until Apple hire people that know what they are doing they'll never compete with cable, satellite, online companies like Amazon and Netflix...

I'd suggest they start the spend with that.....
Score: 7 Votes (Like | Disagree)
Pilgrim1099 Avatar
64 months ago
Until Apple hire people that know what they are doing they'll never compete with cable, satellite, online companies like Amazon and Netflix...

I'd suggest they start the spend with that.....
They should've done that about 3 years ago. They're reacting to the Netflix growth. Apple's strategy of trying to be 'everything for everybody' is not working.
Score: 6 Votes (Like | Disagree)

Popular Stories

2022 back to school apple

Apple Launches 2022 Back to School Offer: Up to $150 Gift Card With Mac or iPad

Friday June 24, 2022 5:08 am PDT by
Apple today launched its annual "Back to School" promotion for college/university students in the United States and Canada. This year's promotion offers a free Apple gift card with the purchase of an eligible Mac or iPad, rather than free AirPods like last year. Apple is also offering students 20% off AppleCare+ plans during the promotion. Apple is offering a $150 gift card with the purchase ...
widgets ios 16 feature

Gurman: iPhone 14 Pro to Feature Always-On Display Showing iOS 16's New Lock Screen Widgets

Sunday June 26, 2022 7:36 am PDT by
iPhone 14 Pro models are widely expected to feature always-on displays that allow users to view glanceable information without having to tap to wake the screen. In the latest edition of his Power On newsletter for Bloomberg, Mark Gurman said the feature will include support for iOS 16's new Lock screen widgets for weather, fitness, and more. "Like the Apple Watch, the iPhone 14 Pro will be...
m2 mac mini screen feature

Gurman: Apple Planning M2 Pro Mac Mini, New Apple TV With A14 Chip, Revamped HomePod With S8 Chip, and More

Sunday June 26, 2022 6:31 am PDT by
In the latest edition of his Power On newsletter for Bloomberg, Mark Gurman outlined additional M2 Macs on Apple's product roadmap, including new Mac mini models with M2 and M2 Pro chips, new 14-inch and 16-inch MacBook Pro models with M2 Pro and M2 Max chips, and a new Mac Pro tower with M2 Ultra and "M2 Extreme" chips. Following the M2 series of Macs, Gurman said the first M3 series of...
13 inch macbook pro m2 mock feature 2

Base 13-Inch MacBook Pro With M2 Chip Has Significantly Slower SSD Speeds

Sunday June 26, 2022 2:52 pm PDT by
Following the launch of Apple's new 13-inch MacBook Pro with the M2 chip, it has been discovered that the $1,299 base model with 256GB of storage has significantly slower SSD read/write speeds compared to the equivalent previous-generation model. YouTube channels such as Max Tech and Created Tech tested the 256GB model with Blackmagic's Disk Speed Test app and found that the SSD's read and...
M2 Pro and Max Feature

Apple's Upcoming M2 Pro Chip for High-End MacBook Pro and Mac Mini Will Reportedly Be 3nm

Monday June 27, 2022 7:31 am PDT by
TSMC will manufacture Apple's upcoming "M2 Pro" and "M3" chips based on its 3nm process, according to Taiwanese industry publication DigiTimes. "Apple reportedly has booked TSMC capacity for its upcoming 3nm M3 and M2 Pro processors," said DigiTimes, in a report focused on competition between chipmakers like TSMC and Samsung to secure 3nm chip orders. As expected, the report said TSMC will...
airpods pro 2 1

AirPods Pro 2 Said to Feature Upgraded H1 Chip, Find My, Heart Rate Detection, USB-C and More

Friday June 24, 2022 9:48 am PDT by
The next-generation AirPods Pro could come with a long list of new features that include heart rate detection, the ability to function as a hearing aid, and a USB-C port according to a report from 52Audio. The site claims that it has received new information on the AirPods Pro 2, and it has used that information to provide some renders on what the earbuds might look like. Design wise, there...
tesla carplay hack

Tesla Apple CarPlay Hack Updated to Work With Any Tesla Model

Monday June 27, 2022 3:38 am PDT by
Polish developer Michał Gapiński has released a new and improved version of his "Tesla Android Project" which brings Apple's CarPlay experience to more Tesla vehicles than ever before. According to Gapiński, version 2022.25.1 provides "100% functional CarPlay integration for any Tesla," and comes with several new features and bug fixes. The project now supports DRM video playback so that...