Apple tipped to invest US$1billion in original programming

Apple preps $1bn war chest, adds Cherniss

On Wednesday, those stocks barely budged.

What's more, it's claimed Netflix is preparing to spend more than $6 billion in 2017, so if this latest venture for Apple is successful, the company will likely up its investment in the coming years.

It seems producing original video content is all the rage in the tech industry these days, with everyone from Facebook to Amazon dabbling in the sphere that used to belong to giant movie studios.

According to the WSJ, Apple's recent hires from Sony's entertainment wing, Jamie Erlicht and Zack Van Amburg, would be tasked with spending the funds.

A popular catalog of original content could substantially drive up Services revenue. The content could be housed on Apple's existing music streaming platform or a new video-focused service, according to the report. Erlicht and Van Amburg are former presidents from Sony Pictures Television that moved to Apple in June to oversee video content strategy and production. High-end shows such as Game of Thrones cost more than $10 million per episode to produce.

Matt Cherniss, former president at WGN America, is joining Apple as the company continues to ramp up its push into original programming. If Apple wants to outdo something like HBO's "Game of Thrones", It would definitely need more money. Basically Apple has the power to pull off ambitious projects with big name directors and actors and may even pull off theatrical releases to be eligible for Academy Awards, which is something that Netflix has been wrestling with now. Though both shows have received very poor critical reception, this surely has not discouraged Apple. Though lower than streaming competitors' budgets, $1 billion only represents a small fraction of Apple's $261 billion in cash on its balance sheet.

Let's see where Apple's decision to produce original content takes them. Cue, who reports to CEO Tim Cook, is in charge of the iTunes Store and Apple Music, along with other products and services including Apple Pay, Siri, Maps, and iCloud services.

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