Apple Stock News
New reports have been released claiming that Apple is exploring the possibility of creating its own original content, following in the footsteps of established streaming services Netflix, Amazon, and Hulu. A week from today, Apple will be releasing its new Apple TV set top box during its September event, and there are rumors it could include a Netflix-style subscription service. This could be a huge opportunity, because the online video market is growing rapidly.
Source: Statista
As this figure shows, the video market will grow much more rapidly than the music market, in which Apple recently released a revamped streaming service. The primary driver of this growth is subscription-based streaming, leading to speculation that Apple could try to enter into this market.
The Apple TV is not expected to include a slimmed-down cable package, which could eventually be a differentiator from the competition in the future. Apple has been struggling to negotiate with content providers, leading to speculation that the company could use its large cash reserves to create its own content. Apple could even acquire a studio outright, considering the amount of cash the company is sitting on.
