Apple eyes move into original programming

Andrew Wallenstein, writing for Variety:

The scale of Apple’s ambitions vary depending on whom is asked, but one high-level executive who talked with the company said the goal is to create development and production divisions that would churn out long-form content to stream in a bid to compete with Netflix. Apple is hoping to put a headhunting firm on those hires in the coming months, according to source, with the goal of being in operation next year. Unknown is whether the focus is on TV series, movies — or both.

Other sources described the company’s exploration as more of a flirtation, though one pointed to a recent sign that an escalation of interest is clear: Apple is said to have made an unprecedented bid to secure the stars of “Top Gear” when they exited their BBC series earlier this year. But Amazon ended up winning the bidding war for Jeremy Clarkson, James May and Richard Hammond in July.

The traditional content production model, where short form content is created by the networks and long form comes from the movie studios, is being deconstructed. What started with Netflix and HBO is now spreading like wildfire. Other cable channels are creating short form, with shows like Louie, Mad Men, Humans, and the like.

Replaying movies, long a staple of the cable bundle, is starting to lose its luster. There is just too much shiny new content to compete with the mediocre B-movies that flood the cable channels. Netflix just dropped its deal with Epix, showing its preference for new content over old movies (though that deal was quickly picked up by Hulu).

Apple wants to get into the biz, so they’ll need their own original shiny content. It just makes sense. Exploration or flirtation, this seems a smart, and necessary, business move.