Netflix And Disney Shares Dropped As Soon As Apple Announced The Price Of Its Streaming Service
Apple is well on the way to rolling out its own line of original streaming content, throwing its hat into a ring currently dominated by the likes of Netflix, Hulu and Amazon.
Earlier in 2018, The New York Times announced that Apple's video division had undertaken 12 TV and movie projects, 9 of which are said to be 'straight-to-series', meaning they skip the pilot phase altogether.
Already Apple has a successful basis for a streaming platform up and running in the form of Apple TV, along with an operating budget that sits somewhere around $US1 billion. This figure, which experts project Apple will far exceed, has allowed it to outbid even its biggest rivals to the rights for major upcoming projects, despite Netflix having an operating budget eight times larger.
The Times also reported that they've outspent both YouTube and Facebook, two companies also looking to make their mark in the original content space, over recent months. Unlike any of their rivals, however, Apple have far more cash to burn as the result of the electronics empire they've built. How much? Some suggest the figure could be somewhere around the $300 billion mark.
Now, having revealed more information regarding its streaming service at the highly anticipated Apple Event at the company's Cupertino headquarters, the extent of the streaming wars has only escalated. They may have arrived late to the party, but Apple's announcement of its enviable price point - just $US4.99 per month for a family subscription - has seen a drop in shares for Disney, Roku and Netfix, all of which are more expensive in comparison.
According to Market Insider, Disney's stock took the smallest hit and dropped just 2.76 per cent. This was followed by Netflix with a 3.25 per cent drop, and Roku which saw the biggest change after its shares fell 12.62 per cent. Experts estimate that Roku's major fall stems from the fact that Apple is entering their territory - as Roku has come to be known for its focus on smart TVs. Apple however, announced that anyone who buys a Mac, iPhone or Apple TV will get a free year of Apple TV+ that will seamlessly integrate into Apple products.
Some of the 40 projects Apple are known to have planned include a psychological thriller directed by M. Knight Shyamalan, an anthology from Steven Spielberg, and a project entitled Amazing Stories, the creation of La La Land director Damien Chazelle. They also have snatched some incredible celebrity talent with the likes of Jason Momoa, Oprah Winfrey, and Jennifer Aniston.
“We’re all in,” said Eddy Cue, a senior vice president who oversees the team in charge of the company’s original programming initiative, at SXSW in Austin. “We’re completely all in.”