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News Room

5 Words CEO’s Dread, “Apple Is Entering The Market”

Compare Guru
2015-09-08
After Nokia and Blackberry were crushed to dust by the behemoth Apple, it seems the next big thing on their list is Hollywood studios.

Written By: Melissa Nyman

Claims by premier trade magazine, Variety, Apple executives are exploring America’s entertainment industry with hopes of film content production.

Despite Apple’s close-knitted alliances with many of the big entertainment firms, this is no doubt an unsettling twist for a once seen distribution channel now possibly a future competitor. Apple will be a late-comer should the claims be true, facing opposition such as Amazon and Netflix who have a deep foothold in the industry that’s been coming on for years. Netflix, who has won over critics and audiences with gripping TV Shows such as Orange is The New Black, House of Cards and Unbreakable Kimmy Schmidt. These shows are only available for online streaming services and licensing to traditional TV shows are never foregone.

Secretive about production budget, analysts estimated Netflix to have spent at least $3 Billion US dollars in 2014. The revenue made was above and beyond $5.5 billion and foreseen to make to make more than $7 billion this year. And this all started out with renting DVD's.

Subscriptions to services like Netflix and Amazon means there is no adverts or waiting for the next episode which results in a legitimate on-demand binge by the consumer for favourite shows.

Apple is rumoured to be attracted to this market for different reasons than the two giants, Netflix and Amazon. They depend on the content, whilst apple views content as a means to an end.

 

The 90% revenue made from Apple amounting in $160 billion in 2014, coming alone from selling devices. Content available exclusively to Apple customers, via Apple services and displayed on Apple devices, makes device loyalty stronger.

 

Like Sony, Apple entering a new industry possibly means at its pinnacle could distract away from leading. The problem with it all is not necessarily the money but rather the unpredictable modern audience who flock to popular content.

If rumours are true, great entertainment awaits.

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