Apple has been actively ordering content for its lineup, including a highly anticipated dramatic performance and A-star. Disney’s efforts to restructure its staff focus on upcoming streaming media sites, and there is a pending agreement to purchase 21st Century Fox (NASDAQ: FOX) (NASDAQ: FOXA), a large content manufacturer. .
The efforts and funding of the two companies in their content strategy show that they do not underestimate what will happen to compete with Netflix – and this should intimidate Netflix.
NETFLIX has a comfortable clue in streaming space, but it may change in 2019. Image source: NETFLIX.
Apple actively increases its content lineup
Apple is late for the content game. The company did not release its first original series “Application Star” until June last year. This is a reality show about the creator of the app, and the debut of the most incomprehensible comments.
But although Apple may be behind Netflix, it also has funds to recruit the best talent and win the best script bid battle. It is expected that Apple will spend 1 billion U.S. dollars on television programs and movies in 2018. Although this is much less than Netflix’s $8 billion content budget, Apple is just starting out.
“We are making large investments,” said Eddy Cue, music director of Apple iTunes at SXSW (South by Southwest conference) on March 12. “money is not a problem.”
At the end of 2017, the tech giant got a very coveted series in the morning talk show starring Reese Witherspoon and Jennifer Aniston. According to “Hollywood Reports”, Apple paid $1.25 million each week to stars.
Other performances for Apple Inc. include the real crime series Are You Sleeping? , starring Octavia Spencer, known for her role in The Help and Hidden Figures. Apple will also revive the “magical story” of science fiction dramas in Steven Spielberg’s 10 episodes, each covering a $5 million budget.
According to Cue, Apple has a total of more than 10 works on display, but the focus is on quality rather than quantity. It may have been experimented last year because Apple has formed a bond with the Planet of the App, but Apple did not mess up this year. “We are all there,” Cue said at the conference.
Disney reorganizes company, focusing on streaming media
Disney is also preparing to launch streaming media sites this year. On March 14, the company announced that it will reorganize the company into four parts, including a new direct-to-consumer division that will provide services for its streaming media business. Disney is preparing to absorb 21st Century Fox and the deal is still waiting for government approval.
As part of the reorganization, Disney promoted Kevin Meyer from chief strategy officer to chairman of the direct-to-consumer division. Disney also recently hired former Apple Inc. and Samsung executive Kevin Swint to help its new streaming media division. Swint previously served as vice president of products, content and services for Samsung for two years. Before that, he worked as an international film director in Apple’s iTunes for five years.
Taking into account the launch of two streaming media sites, Disney’s new direct-to-consumer division makes sense. The first will be launched this spring as a direct-to-consumer ESPN service that will be used with the redesigned ESPN application. The $4.99 per month subscription service will provide users with thousands of other live sports events and a full library of ESPN Films. Disney is also committed to launching family-oriented streaming services and will not be ready until 2019. This may harm Netflix, which has not yet provided a website for parents who only watch shows for children.
Another thing that Netflix panicked was Disney’s acquisition of “21st Century Fox” represented by “Modern Family” and “This Is Us.” Disney itself is already a large movie maker, but this transaction can give it the talent it really needs, thereby weakening Netflix’s user growth. “How to look at income-generating opportunities, especially production-related income opportunities, is to take into account that the products we are buying here have important production capabilities, so we produce talent on our behalf”, Disney CEO Bob Iger This is stated in the latest financial report.
Netflix not only needs to compete with Disney – perhaps the most familiar competitor in the content field – it must also start without Disney in 2019. Last fall, Disney announced that it will win its championship from Netflix and prepare its own streaming website by the end of 2018.
Reid Hastings, chief executive of Netflix, has been expressing calm for the upcoming Disney competition. Hastings said at the latest earnings conference call: “We think this is no longer a threat to us, but it is a good opportunity for them.”
Although Hastings must provide strong support for investors, it is certain that Netflix executives are paying close attention to their strategic efforts. Perhaps this is why Netflix plans to produce an amazing 700 TVs, movies and stand-up comedy programs this year.