Apple’s stuttering foray into Hollywood will be given a US$1 billion war chest over the next year to establish the tech giant itself as a serious player in the TV and movie industry.
The Wall Street Journal reports the money could fund up to 10 shows, and is likely to include a few blockbusters like House of Cards, which costs about $10 million per episode but was pivotal in helping Netflix grow.
The scale of the investment is about half of what Time Warner’s HBO spends each year on content and well below Amazon ($4.5 billion) and top investor Netflix ($7 billion).
The budget will be managed by Hollywood veterans Jamie Erlicht and Zack Van Amburg, who were poached in June from Sony Corp.
Apple has made no secret of its plans to become a content heavyweight but its offerings to date have been underwhelming.
These include the critically panned Planet of the Apps, an app-focused take on ‘Shark Tank’ starring celebrity mentors Will.i.am and Jessica Alba and the delayed Carpool Karaoke, which launched this month.
Breaking into the already crowded Hollywood won’t be easy and Apple’s investment is about on par with the amount Amazon spent and half of Netflix’s investment when it launched House of Cards and Orange is the New Black.
But money won’t be an issue for Apple, which has a cool $US261 billion in cash on its balance sheet and brings in sales of US$216 billion.
Investment into content could scale up rapidly as tech giants continue to shake up showbusiness.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.