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Is Apple's Original Content a Threat to Existing Players?

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Apple’s (AAPL - Free Report) restrained approach in streaming video content has cheered Netflix (NFLX - Free Report) investors. Netflix’s shares climbed more than 2% in Sep 24 trading, after the release of a report that mentioned Apple’s plans of staying away from sensitive content.

The original content streaming space is chiefly dominated by Netflix and Amazon (AMZN - Free Report) , which cater to consumer demand without censoring profanity, violence or sex — the crucial content spheres that Apple is reluctant to include in its video streaming service.

A recent report by Wall Street Journal said that Apple wants to feature high-quality shows that have a wide appeal without any annoying content. The company’s refusal to take aboard Vital Signs, a show about hip-hop artist Dr. Dre’s life, because it showcases violence, sex and drug use, sends a clear message to Hollywood about Apple’s preference for family-friendly content that doesn’t tarnish its brand image.

Here’s Why Apple May Not be a Threat

When Netflix tapped into the video streaming market back in 2008, the company sensed that supplying original content to its subscribers will cater to demand for online resources. The company’s content strategy is audience-centric and doesn’t focus on the taste of a specific group of viewers. This is where Apple might lag.

Apple’s family-centric approach could limit its content in the long run, restraining it from diversifying its shows. In a world of strong content-backed video streaming, uncensored content is a major driver for viewers. Big-budget originals by Netflix and Amazon are hard to beat because they heed to what consumers want, irrespective of the nature of content.

While Apple had its run of originals last summer with Carpool Karaoke and Planet of the Apps, the company’s projects ahead seem unlikely to offer much variety in terms of content.

Apple to Play by Its Strengths

Apple’s recent entry in the original content space comes with big plans. The company is set to take advantage of its music platform and dole out the kind of content that best goes with its brand image rather than competing with its rivals.

The iPhone maker’s technological expertise gives it an upper hand in the business and its access to approximately 1.3 billion devices sets it apart from its competitors. It can persuade its customers to adopt its streaming services through the iPhone medium. Also, Apple’s brand image itself paints a picture of high-quality and assures of thoroughness in its tasks, which should support initial adoption of its streaming services.

End Note

Apple’s music platform was the base of its two shows last year, and therefore promises more for the shows scheduled in the future. Although the new releases are at least a year away, the company’s investment in the new domain and a highly skilled team could help it produce amazing content despite its restrained approach. But that may not be a significant concern for the existing players for now.

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