Apple is mulling over creating its own programming business and wants to compete with the greats in the video streaming services like Netflix Inc, Amazon.com’s Prime and Hulu. Apple is having plans to come out with its own video streaming service and it wants to enter the fray as quickly as next year. This has been shocking news for Netflix Inc. As this news made its shares fall by over 8% on Tuesday.
There are reports that Apple has been making talks with the who’s who of the entertainment industry. It has been contacting the high level people in the industry on a regular basis for some time now. There have been no reports of the talks that have taken place between Apple and the entertainment bigwigs as everything is now kept confidential.
But, Apple has made it clear that it has plans to come out with its own programming content next year and everyone could guess what the company might have discussed with the big players in the entertainment industry. Apple is currently assessing as to whether it should start its own TV shows and movies. The company can also buy content from Hollywood studios. It looks like everything is in the nascent stage at the moment as nothing substantial has come out from Apple or the Hollywood studio biggies.
The shares of Netflix have more than doubled this year. There is intense competition to get the attention of the audiences by video streaming services and also for the subscription dollars. The foray of Apple in the video streaming service is sure to cause a severe dent in the revenue of all other popular streaming services.
Netflix has let of its distribution deal with Epix and hence movies of popular movie production houses like Liongate, Paramount and MGM will not feature on Netflix. Hulu, another popular video streaming service and rival to Netflix, announced that it has signed a pact with the Epix.
Apple wants to cash in on the popularity of streaming service among the youth who do not want to pay for the expensive cable TV bundles or overindulge in watching TV shows. Apple is looking to come out with long term online video content and is looking at creating development and production divisions.
There is no clear cut decision made by Apple so far on whether it would concentrate on TV series or movies or even opt for both options. Apple will be looking to hire people for the planned divisions for creating online streaming content in the coming months.