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Apple Reportedly Outspends FB, YouTube for Original Shows
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Apple (AAPL - Free Report) has reportedly outspent Facebook and Alphabet (GOOGL - Free Report) division YouTube to acquire original programming. Per TechCrunch, which quoted a report from The New York Times, Apple has also outsmarted streaming giant Netflix (NFLX - Free Report) by aggressively bidding for original content.
The company is now expected to launch its original shows as early as March 2019. Since October 2017, the company has ordered 12 original shows, out of which nine skips the pilot-episode stage, according to The New York Times.
Apple is reportedly spending more than its reported budget of $1 billion for acquiring original content. The company’s solid cash balance — $285.1 billion as of Dec 30, 2017 — is enough to support any overspending.
Apple shares have returned 20.1% in the past year, much better than 13% rally of the S&P 500.
Aggressive Approach to Boost Foothold
Apple’s aggressiveness is comprehensible as the iPhone maker is quite late in joining the bandwagon. The streaming market is currently dominated by the likes of Netflix, Hulu, HBO, YouTube, Amazon Prime and Comcast.
Moreover, the space anticipated to get more crowded with launch of streaming service by Disney. Notably, the recent acquisition of several major 21st Century Fox assets is a significant addition to Disney’s portfolio.
With the increase in the number of cord cutters, streaming services are poised to become the next big business opportunity. Per Research firm MarketsandMarkets, the video streaming industry is projected to grow at a CAGR of 18.2% between 2017 and 2022.
Focus on Quality: Key Catalyst
Apple is well-known for its focus on quality, which is expected to be a differentiator in the streaming market. Although the company is acquiring content at a breakneck speed, it is unlikely to follow Netflix’s high volume strategy.
Moreover, Apple has been gearing up to offer quality content by signing up renowned Hollywood actors, directors, and producers.
The company’s original programming division spearheaded by two former Sony executives — Jamie Erlicht and Zack Van Amburg — has made deals with the likes of Octavia Spencer, Reese Witherspoon, Jennifer Aniston, Steven Spielberg, Francis Lawrence, Damien Chazelle, M. Night Shyamalan and Kristen Wiig in recent times.
Moreover, Apple is developing an untitled space drama involving Ronald D. Moore, the screenwriter and producer, behind the 2004 reboot of the classic sci-fi series Battlestar Galactica.
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Apple Reportedly Outspends FB, YouTube for Original Shows
Apple (AAPL - Free Report) has reportedly outspent Facebook and Alphabet (GOOGL - Free Report) division YouTube to acquire original programming. Per TechCrunch, which quoted a report from The New York Times, Apple has also outsmarted streaming giant Netflix (NFLX - Free Report) by aggressively bidding for original content.
The company is now expected to launch its original shows as early as March 2019. Since October 2017, the company has ordered 12 original shows, out of which nine skips the pilot-episode stage, according to The New York Times.
Apple is reportedly spending more than its reported budget of $1 billion for acquiring original content. The company’s solid cash balance — $285.1 billion as of Dec 30, 2017 — is enough to support any overspending.
Apple shares have returned 20.1% in the past year, much better than 13% rally of the S&P 500.
Aggressive Approach to Boost Foothold
Apple’s aggressiveness is comprehensible as the iPhone maker is quite late in joining the bandwagon. The streaming market is currently dominated by the likes of Netflix, Hulu, HBO, YouTube, Amazon Prime and Comcast.
Moreover, the space anticipated to get more crowded with launch of streaming service by Disney. Notably, the recent acquisition of several major 21st Century Fox assets is a significant addition to Disney’s portfolio.
With the increase in the number of cord cutters, streaming services are poised to become the next big business opportunity. Per Research firm MarketsandMarkets, the video streaming industry is projected to grow at a CAGR of 18.2% between 2017 and 2022.
Focus on Quality: Key Catalyst
Apple is well-known for its focus on quality, which is expected to be a differentiator in the streaming market. Although the company is acquiring content at a breakneck speed, it is unlikely to follow Netflix’s high volume strategy.
Moreover, Apple has been gearing up to offer quality content by signing up renowned Hollywood actors, directors, and producers.
The company’s original programming division spearheaded by two former Sony executives — Jamie Erlicht and Zack Van Amburg — has made deals with the likes of Octavia Spencer, Reese Witherspoon, Jennifer Aniston, Steven Spielberg, Francis Lawrence, Damien Chazelle, M. Night Shyamalan and Kristen Wiig in recent times.
Moreover, Apple is developing an untitled space drama involving Ronald D. Moore, the screenwriter and producer, behind the 2004 reboot of the classic sci-fi series Battlestar Galactica.
Currently, Apple carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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