×

Apple Projected to Spend $4.2 Billion on Original Content by 2022

Apple will ramp its original content spend to $4.2 billion by 2022 as part of an effort to expand a rebranded Apple Music, according to a projection from Loup Ventures analyst Gene Munster.

The longtime Apple watcher sees the increase as an effort to compete with incumbent subscription VOD giants. But Apple won’t catch up to either by 2022 in terms of spend, projecting that Amazon will eclipse Netflix, $8.3 billion to $6.8 billion.

Earlier this year, Apple signaled its intent to invest as much as $1 billion into original programming. That’s still well short of Netflix, which announced previously an $8 billion budget toward original and licensed content in 2018, and Amazon, which is expected to spend more than the $4.5 billion that went into premium video entertainment this year.

Munster envisions Apple rebranding Apple Music in the next 2-3 years to reflect a scope larger than just songs. “Apple should be able to quickly expand their sub base given they have a running start with just over 30 million Apple Music subs that will have access to the video offering for the same $10 per month,” he wrote in a Nov. 21 research note. 

The rationale behind the spending increase is making good on Apple’s pledge to grow its Services business, which Munster estimates will account for 14% of the company’s revenues in 2017. He projects that sum will grow at a high-teens rate for the next several years.

While Apple has yet to make clear whether Apple Music and/or some other part of its business will be where its original programming will be made available to consumers, the company has begun greenlighting original series including an “Amazing Stories” reboot from Steven Spielberg and a news-business comedy featuring Jennifer Aniston and Reese Witherspoon.

 

Popular on Variety

More Digital

  • Alex Jones

    Google Removes Infowars Android App From Online Store Over Coronavirus Misinformation

    Google on Friday removed the Android version of the Infowars app from the Google Play online store, after comments made by Infowars founder Alex Jones about the COVID-19 pandemic were deemed false and harmful. Google Play was that last major internet platform that provided an outlet for Infowars, which trades in right-wing conspiracy theories and [...]

  • Van Weezer

    Weezer Debuts Online Video Game as Throwback to Simpler Times -- And Album Promo

    Eight-bit diehards, get your thumbs ready: pop rock darlings Weezer have launched a nostalgia-heavy online side-scrolling action game, playable via web browsers.  The “The End of the Game” game has users playing as one of the band’s four members and jumping and shooting their way in a (surprisingly difficult) boss fight against an oversized, beanie-clad [...]

  • Google-Mountain-View-Calif

    Google Commits $800 Million, Mostly in Ad Credits, to Coronavirus Relief Efforts

    Google and parent Alphabet are pitching in to help small businesses, health organizations and governments dealing with the COVID-19 pandemic. The internet company has earmarked more than $800 million for coronavirus relief, about three-fourths of which ($610 million) is in the form of Google Ad credits to small and midsize businesses and governmental orgs, Alphabet [...]

  • Why Are Music Streams Down If

    Why Are Music Streams Down If Everyone's Stuck at Home? Experts Weigh in

    While it might seem counterintuitive that music streams would decline at a time when so many Americans were ordered to stay home, data-savvy label executives were neither startled nor concerned by the 7.6% drop in plays that happened in the March 13-19 tracking week. Simply put, they say it’s down to focus on news and [...]

  • MipTV Online Plus Initiative Launches

    MipTV Online Plus Features Showcases, Pitches, Presentations

    Reed Midem launches its MipTV Online Plus initiative Monday as a digital alternative to the conference that was scheduled to open on the same day in Cannes, but it includes many of the elements that were planned for the physical event. Among the streamed sessions on Monday morning (Paris time) will be the invitation-only Drama [...]

More From Our Brands

Access exclusive content