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
58 months ago
In related news, Apple has announced a renewal of CarPlay Karaoke for 93 more seasons.
Score: 15 Votes (Like | Disagree)
imronburgundy Avatar
58 months ago
Is anyone subscribing to Apple Music to watch Apple TV shows? I doubt it.
Score: 11 Votes (Like | Disagree)
Sheza Avatar
58 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
58 months ago
$1bn is a drop in the ocean compared to the competition.
Score: 7 Votes (Like | Disagree)
apolloa Avatar
58 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
58 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

maxresdefault

Review: M1 Max MacBook Pro After Three Months

Wednesday January 19, 2022 11:30 am PST by
It's now been a few months since the M1 Pro and M1 Max MacBook Pro models launched in October, and MacRumors video editor Dan Barbera has been using one of the new machines since they debuted. Over on the MacRumors YouTube channel, Dan has shared a three month review of his MacBook Pro to see how it has held up over time and how it's changed his workflow. Subscribe to the MacRumors YouTube ...
iphone se 2020 top

New iPhone SE Likely to Launch in April Based on Production Timeframe

Wednesday January 19, 2022 6:44 am PST by
Apple suppliers will begin producing display panels for the third-generation iPhone SE this month, with final assembly of the device likely to start in March, according to information shared by display industry consultant Ross Young. Based on this production timeframe, Young believes the third-generation iPhone SE is likely to launch in the second half of April, or perhaps in early May at...
AirPods 3 New Firmware Feature

Apple Updates AirPods 3 Firmware to Version 4C170

Tuesday January 18, 2022 11:46 am PST by
Apple today released a new 4C170 firmware update for the AirPods 3, an update from the prior 4C165 that was made available in December. Apple does not offer details on what's included in new firmware updates for the AirPods‌, so we don't know what improvements or bug fixes the new firmware brings. There is no standard way to upgrade the ‌AirPods‌‌ software, but firmware is...
iPad Air Feature 2 green

New Apple Products Filed in Regulatory Database, Likely Including New iPhone SE and iPad Air

Tuesday January 18, 2022 6:11 am PST by
Apple today filed unreleased iPhone and iPad models in the Eurasian Economic Commission database, as spotted by French blog Consomac. The filings likely represent the rumored third-generation iPhone SE, fifth-generation iPad Air, and potentially more. The unreleased iPhone models have the identifiers A2595, A2783, and A2784, while the unreleased iPad models have the identifiers A2588, A2589, ...
iphone 5g mmwave

U.S. Airlines Warn of 'Catastrophic' Crisis With Impending 5G Rollout, AT&T and Verizon Agree to Delay Around Airports

Tuesday January 18, 2022 10:35 am PST by
Verizon and AT&T's upcoming rollout of new C-Band 5G technology could cause chaos and lead to widespread delays of passenger and cargo flights, major U.S. airlines said on Monday in a letter sent to the White House National Economic Council, the FAA, and the FCC (via Reuters). "Unless our major hubs are cleared to fly, the vast majority of the traveling and shipping public will essentially...
microsoft office icons

Microsoft Releases Office for Mac Update With Full Apple Silicon Support in Excel

Tuesday January 18, 2022 4:15 am PST by
Microsoft has released a new version of its Office for Mac productivity suite that includes an updated Excel app with 100% native support for Apple silicon machines. According to the release notes accompanying version 16.57, Excel will now run natively on Macs powered by Apple's M1-series processors without having to use the Rosetta 2 translation layer, which means anyone using a Mac with an ...
appleeducation

Apple's US Education Store Now Requires Institution Verification to Buy Discounted Products

Wednesday January 19, 2022 2:22 am PST by
Apple is now requiring that customers in the United States verify that they're active students, teachers, or staff members at an educational institution in order to access education discounts on products. Previously, little verification was needed for customers to purchase products through Apple's education store in the United States. Apple's education stores offer models of the iPad and Mac ...
iPhone 14 Mock pill and hole thumb

ProMotion Now Expected to Remain Exclusive to iPhone 14 Pro Models, Not Expand to Entire Lineup

Sunday January 16, 2022 8:56 am PST by
Continuing the tradition set with the iPhone 13 Pro, only the highest-end iPhone 14 models will feature Apple's ProMotion display technology, according to a respected display analyst. Ross Young, who on multiple occasions has detailed accurate information about Apple's future products, said in a tweet that ProMotion will not be expanded to the entire iPhone 14 lineup and will remain...
Beyond iPhone 13 Better Blue Face ID

Rumored iPhone 14 Pro Feature Delayed Until Next Year

Wednesday January 19, 2022 3:00 am PST by
Apple's long-rumored under-display Face ID technology will not be coming to the iPhone 14 Pro, according to recent reports. Based on the latest rumors, it now looks unlikely that the 6.1-inch iPhone 14 Pro and 6.7-inch iPhone 14 Pro Max will feature Face ID technology under the display as several reports claimed over the past year. Display industry consultant Ross Young, who often reveals ...