Analyst Predicts Apple will Raise their Budget for Original Content from $1 Billion to over $4 Billion by 2022
Earlier this month Patently Apple posted a report about Apple snapping up a major drama series with Reese Witherspoon and Jennifer Aniston for two seasons. Apple's new team is beginning to get some traction and the rumor today is that Apple will ramp its original content spending 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.
Variety further noted that 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." For more read the full Variety report.
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