By CultureBanx Team
- Apple is dropping $6B on original content for its Apple + service
- Black millennials stream videos more frequently than any other group
Streaming wars are heating up with Apple (AAPL -0.08%) reportedly dropping $6 billion on original content for its Apple + service, though it may be dead on arrival (DOA). Plans of taking over the top spot from Netflix (NFLX -0.30%) by leveraging super celebrities for shows is perhaps ill-advised and a waste of money. With black millennials streaming videos more frequently than any other group, should Apple tap into shows with a strong black identity as a way to increase subscribers and take over the number one streaming spot?
Why This Matters: Competition is steep in this space, though Apple’s budget is in good company with media outsider Amazon (AMZN -0.98%), they’ve set aside $7 billion for original content in 2019. Top dog Netflix is pouring $15 billion into its original programming this year. Streaming services like Apple + should be betting on representation by penning deals with the biggest names in black entertainment and culture, as they look to have a bigger stake in the reported $1.3 trillion dollars of spending power African Americans possess.
For some reason Apple’s thinks its new series, The Morning Show which stars Reese Witherspoon, Steve Carell, and Jennifer Aniston is going to draw in new a large amount of viewers. Each of these actors will make $1.25 million per episode, and the Financial Times reported, every single episode will cost more than the Game of Thrones $15 million finale. To really help drive subscribers, it will be important for Apple to create authentic original shows like Netflix has done with its Strong Black Lead for 150 million subscribers.
One of the main reasons Apple is wading so deep into the video streaming water is they want to be less dependent on iPhone sales to drive revenue. The company wants to achieve $50 billion in services revenue by 2020.
What’s Next: Netflix is leading the race now, but Disney, Amazon and Apple all have very deep pockets and could easily out pace the top competitor in this space. The company’s new service will go live in the next two months. Will you be watching?
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