Apple to spend $ 6 billion on original content to rival Netflix | Business

The streaming serviceApple TV + due to launch in November and enter the list of Netflix threats: Apple, which has said it would have a smaller catalog focused on quality instead of quantity, could invest up to $ 6 billion in its original productions.

Apple TV +

The amount was disclosed by the Financial Times, noting that the plans changed before the launch: executives Jamie Erlicht and Zack Van Amburg, formerly Sony Pictures, would have been hired in 2017 with the mission to invest “only” US $ 1 billion in exclusive series and films in the first year of Apple TV + operation.

Only the budget has increased sixfold. The series The Morning Show, starring Jennifer Aniston, Reese Witherspoon and Steve Carell, received “hundreds of millions of dollars” in investments. O Financial Times did not provide the exact number, but Bloomberg reports that the first two seasons cost $ 300 million. It is estimated that the cost per episode was higher than last season’s $ 15 million. game of Thrones.

Another Apple TV + debut production is See. The series takes place in a future in which people have gone blind after a virus outbreak. In this situation, society had to find new ways to interact, build, hunt and survive, but everything changes with the birth of twins who have a sense of sight. Each episode will be approximately 60 minutes long.

Investing in original content has a more immediate impact on Apple’s cashier than on Netflix. According to Financial Times, Netflix pays creators of exclusive productions “over several years,” while Apple passes on the money earlier, when “certain goals are achieved”.

$ 6 billion in investments even before the Apple TV + debuts is not worth throwing away: Netflix, which already has a consolidated platform, plans to spend $ 14 billion in 2019 on original content. Apple’s plan is to increase its service revenue, reaching as much as $ 50 billion in 2020, at a time of stagnant iPhones sales.

If the rumors are right, Apple TV + will launch in November, priced at $ 9.99 a month in the United States, cheaper than the $ 10.99 standard Netflix plan, but more expensive than $ 6.99 from Disney +, which will debut at the same time.

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