Apple Inc (NASDAQ:AAPL) Original TV Content Play May Kill Netflix Market Hold

Apple inc (NASDAQ:AAPL) Apple TV

Apple Inc. is going to enter the online TV streaming space with a full-blown assault that may have the likes of Netflix and Hulu going back to the drawing boards. It was reported that Apple is working on creating original content for the Apple TV service and set-top box that will be unveiled next week. Apple’s foray into TV streaming and original content will have the firm toeing the path that Netflix has already charted for itself.

Apple inc (NASDAQ:AAPL)

Variety reports that Apple has been in talks with Hollywood execs over the last couple of weeks in a bid to find a team to lead the firm’s content creation efforts. Eddy Cue, who happens to be in charge of content matters at Apple, is behind the talks and it appears that the firm will start making key hires in the next couple of months.

Apple set to rival Netflix

It is still too early to predict the depth of Apple’s ambition for the online TV market. However, Apple usually disrupts any market that it enters. Apple changed the face of music with iPod, it recreated smartphones with iPhones, Apple Watch is killing a 200+-year industry and Apple cars will blow your mind. Hence, Apple’s foray into the on-demand TV space might hasten the speed of cord-cutting waves.

An Apple debut into the video streaming space with original content will put the firm going against Netflix. Variety notes, “one high-level executive who talked with the company said the goal is to create development and production divisions that would churn out long-form content to stream in a bid to compete with Netflix”.

Netflix   is known for the success of its original programming including “House of Cards” and “Orange is the New Black”.  Amazon   is producing a growing catalog of original content as well including “Transparent” and “Bosch”.

Netflix  was in the news yesterday after it said that it won’t renew its contract with Epix in a move the will see the firm working more on creating original content. The firm says, “we have begun making movies that will premiere on Netflix globally.” Netflix also has some Hollywood big names in its family – saying, “It will take us time to build a robust slate of original movies, but we’re hard at work on it with such great stars and directors as Brad Pitt, Ricky Gervais, Judd Apatow, Angelina Jolie, Sofia Coppola and Adam Sandler”.

Apple TV is not just a “Skinny Bundle”

The market would love to see how an Apple-Netflix rivalry will play out in the video streaming space. However, Apple has made some moves that will allow its TV service to hit the ground running. Apple is not releasing a “skinny bundle” in line with an assertion made by Andy Hargreaves of Pacific Crest in May. Apple is ready to place a big bet on TV and the market will be waiting to see how that goes in the next couple of months.

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Victor Alagbe is a seasoned business and finance writer with a specialty in writing about how to invest for the long-term in healthcare, pharmacology, energy and tech stocks. His long-term focus is on stocks that provide a nice mix of growth and income. For the short term, he passionately writes about trading stock options for the excitement and leverage that stock options offer.


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