Apple explores move into original programing business: Variety
(Reuters) - Apple Inc is looking to move into the original programing business to compete with video streaming companies such as Netflix Inc, Variety reported on Monday.
Apple, which aims to begin offering the service next year, has held preliminary talks with executives from Hollywood in recent weeks to gauge their interest in producing entertainment content, Variety reported, citing sources. (bit.ly/1Q4MW59)
Apple spokesman Tom Neumayr declined to comment.
Such a move could mean increased competition for Netflix and Amazon.com Inc's Prime Video streaming service.
Netflix shares fell more than 8 percent to $105.74 on Tuesday. Amazon shares declined 2.2 percent to $501.64, while Apple shares fell 2.4 percent to $111.05 amid a sharp fall in the broader market.
Netflix has won over viewers with its award-winning original programs such as "House of Cards" and "Orange is the New Black. Amazon has built up credibility, most notably with its television series "Transparent," which won two Golden Globes earlier this year.
Streaming services are becoming increasingly popular especially with younger viewers who often binge watch TV shows and do not want to pay for costly cable TV bundles.
This has hit traditional media companies such as Viacom Inc, Walt Disney and Twenty-First Century Fox Inc, which posted disappointing numbers this earnings season.
Apple's goal is to create development and production divisions that would churn out long-form content for online streaming, Variety said, quoting a "high-level executive" at the company. Continued...