>> There's amazing content->> Apple is planning to spend $1 billion next year to develop its own movies and TV shows. Jumping into a business Netflix and other emerging powers have used to generate massive growth. The plan was first reported by the Wall Street Journal, Wednesday. That may sound like a lot of cash, but in Hollywood terms, it may not be enough to make a significant run at the leaders.
Reuters' Breakingviews columnist, Jennifer Saba.>> If they're serious about it, and they really wanna challenge Netflix and Amazon and even HBO, they have to throw a lot of money at it. And $1 billion isn't gonna do it.>> Netflix spent $6 billion a year on content, Amazon a reported $4.5 billion.
Their success is spurred by hit series that have catapulted subscriber growth. Apple so far has just dipped its toe in the water with Planet of the Apps and Carpool Karaoke, both series failing to impress critics. Apple has treasure trove to work with, more than $250 billion of cash on hand.
So why is it heading to Hollywood with so little?>> Here's the thing, media is a completely different business than what they're used to dealing with. So my guess is they're just saying, okay listen, let's see what happens. I think the Wall Street Journal reported that they were gonna look at maybe ten types of TV series, or programs or what have you.
That's small, compared to what else is out there.>> Another reason Apple may be playing it safe>> The move could be seen as the way to sure up sales at it's iTune store, an increasingly important part of the business. More than as a direct effort to take down Amazon and Netflix.