Apple said to plan $1 billion investment in TV shows, films


That's about half of what HBO spent on its shows in 2016, and the same amount Amazon spent on programming in 2013, the report notes. On Wednesday, those stocks barely budged. Netflix spends about $6 billion a year on content, roughly on par with Time Warner's spending at Turner and HBO, but behind Fox, Disney, and NBCUniversal which also invest heavily in sports.

Apple is showing serious interest in the production of original video content. The current Carpool Karaoke and Planet of the Apps have not received outstanding reviews so far. Newly acquired Apple employees Zack Van Amburg and Jamie Erlicht will be in charge of managing the original content budget.

Sure, Apple is just getting started with original TV shows.

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Apple has reportedly set aside $1 billion to get its original programming off the ground. Those kinds of shows-scripted comedies and dramas-are expensive to produce, and we've seen Netflix's annual budget for original programming increase over the past few years to accommodate that.

Apple, known for consumer electronics products such as the iPhone and iPad, has moved into original programming with shows such as Battle of the Apps. While details are still murky, $1 billion is not pocket change for anyone other than Apple and could really shake up the video space. Development will be overseen by Matt Cherniss, former president of WGN, the sources say. Something of that caliber could cost more than $10 million per episode to produce.

Apple have already made a foray into online streaming services with iMusic, their music streaming subscription service and it looks like they are keen to expand and become the next big Hollywood contender. The extent of their control over the shows Apple will produce is unclear.

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Not only will Apple need to step up its game to compete with its major rivals, but it will also need to avoid jeopardizing its own business.

Apple aims to double its service business, which includes Apple Store, Apple Pay and Apple Music to $50 billion by 2020.

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