By Joe Clancy `18
When you think of having a night in and streaming a movie, you probably think of Netflix or Hulu. What about Apple? It seems strange that one of the country’s largest electronics producers is not in the market for online streaming. That, however, may be changing soon.
The Wall Street Journal recently reported that Apple plans to begin their own streaming service, supplemented with multiple original series. Although there is no official launch in sight, executives at Apple have said they wish to start offering content by the end of 2017.
Apple’s decision seems to be a no-brainer, rather late if anything. The online streaming industry is both lucrative and growing. According to MarketsandMarkets the industry is projected to be worth 70 billion dollars by 2021.
Apple is one of the biggest companies in the world and has had massive success when it comes to creating technology to view media like music, video, books, and launching innovative products such as the iPod and iPhone. However, 2017 is seeing Apple’s sales fall for the first time since 2001, which has mostly been blamed on the iPhone 7’s stagnant sales. Due to its recently sluggish sales, the 234 billion dollar company looks to extend its production into the online streaming and producing industry.
This industry, however competitive it may be, will offer a large market of subscribers Apple can tap into and boost revenue for their company, especially as more and more channels and providers start streaming their content online. Almost every channel now offers the option of online streaming. Even the NFL has started live streaming their games through outlets like FOX sports and have even streamed content on Twitter.
Apple, a company that prides itself on being innovative, will have to really step up their game and offer a new and unique show. When it comes to producing online content, it is hard to break away from the competition and attract viewers.
According to NPR, Netflix after all spent nearly $100 million to produce House of Cards in 2013, which is no petty investment. Apple will also have to find actors and directors that are bound to create a massive hit and not accept any failures. When it comes to producing new content, there is usually a learning curve that companies will face, so Apple will have to do their best work in hope of attracting distracted viewers especially when one looks at the standings of the industry now.
Take Netflix, for instance, which was established in 1998 as an alternative to traditional movie stores like Blockbuster and offered shipping DVDs to people’s homes to avoid the car ride to the video store. However, in 2013 that all changed when Netflix released its streaming original House of Cards, which proved to be a breakout hit as it has gone on to win six emmys. Netflix again reached massive success in 2016, as nearly 17 million people streamed their original content of Orange is the New Black and Fuller House.
According to NPR, Netflix was able to receive an additional 7 million subscribers alone in the most recent business quarter of 2016. Hulu originally started off as a third party streaming service that offered viewers the ability to watch shows that they had missed the night before. Hulu eventually started producing programming like Stephen King’s 11/22/63 and has seen a massive spike in subscribers. If Apple is going to be able to break through in this industry, they will definitely have to produce content that will captivate their audience.