What it is: Apple plans to spend $1 billion dollars for original content.
What makes the Macintosh special is its software. If you want a computer that’s easy to use, you want macOS, which means you have to buy a Macintosh. If you buy a different computer from Dell or Hewlett-Packard, you’ll most likely get Windows or Linux, neither of which are as easy to use as macOS for novices. As a result, macOS is what helps drive sales of the Macintosh.
Now look at the situation with Apple TV. Apple TV offers the exact same movies that Hulu and Netflix offer, but both Hulu and Netflix offer more TV shows because they offer original content such as shows like “Game of Thrones” or “The Handmaid’s Tale.” Because there’s nothing unique about Apple TV, there’s really no reason to buy and use an Apple TV.
That’s why Apple plans to spend up to $1 billion dollars investing in original programming. They have to and silly reality TV show ripoffs like “Planet of the Apps”simply isn’t going to bed attractive enough for people to want. Apple needs its own must-see TV show like “Game of Thrones.” Hopefully Apple won’t create a clone of “Game of Thrones” but creates something unique that’s just as popular.
As Netflix and Hulu realized years ago, you need original content to attract people. Otherwise you risk being nothing more than a commodity service that can only thrive by cutting prices and profits. Witness the cutthroat competition among PC vendors to see how poorly that turns out for them. When you sell the exact same thing as everyone else, there’s no reason for anyone to by from you except for the price.
Most likely, much of Apple’s $1 billion dollar investment will go down the drain creating original shows that nobody cares about. That’s typical of snow business in general. Every year, the TV networks create new shows and every year they cancel more than half of them before the season even ends. Creating original content isn’t easy because it depends partly on the public and partly on the writing and acting.
Still, Apple must either let Apple TV languish or offer original content. They have no choice. One day, Apple will stumble upon a hit, but just as every television network has gone through cycles of up and down, so will Apple, Netflix, and Hulu go through periods where they offer nothing but garbage and other times when they offer the most popular shows around. That’s just the nature of original TV content.
Watch to see what happens with Apple TV in the future. It may not be much right now, but it could continue to languish in mediocrity or it could excel one day. We’ll find out eventually after Apple spends $1 billion dollars to stumble their way to success.