Nowadays, companies’ digital presences need to have great content. Why else would 69% of marketers say that dynamic and unique content was an important part of a website? Now, Variety reports that Apple has heard the call of the content, and may start producing its own TV and movies.
These rumors are not new, but there’s a chance they may actually pan out this time. Apple is rolling in cash, and it’s eventually going to have to either use it, or pay dividends to share holders. Plus, Apple is already familiar with the media world thanks to iTunes.
However, it seems that Apple may produce original content, because it’s the thing to do now. Both Netflix and Amazon each have award-winning shows already, after all.
Anonymous sources told Variety that Apple is making the move next year in order to compete with existing streaming services, but an Apple spokesperson declined to comment on the rumor.
“The reason they’re doing it is the reason everybody else is doing it: So much viewing is shifting to digital platforms,” eMarketer senior analyst Paul Verna told CNBC. “Particularly for subscription-based companies, there’s a direct link between the subscription audience and the quality of content you offer.”
The fact of the matter is that having original content is smart business move. Once a service has a show that’s generated some buzz, its subscription rates naturally surge, drawing in copious amounts of money. According to Verna, exclusive content is clearly one of the main reasons Netflix has grown to a staggering 62.3 million subscribers.
“As you progress on the growth curve, [relying on licensed materials] is a limiting factor because your audience is set,” said Strategy Analytics Director of Digital Strategy Mike Goodman. “If you really want to be a breakout and you really want to grow, you need original content.”