Apple’s deep pockets could take on Netflix

San Francisco: The potential move of Apple into streaming video could reshape an industry which is already feeling the impact from new players like Netflix.

While Apple has not revealed any plans publicly, a report that the iPhone maker could spend a billion dollars on its own shows suggested more disruption for a sector seeing rapid changes. The move by deep-pocketed Apple would challenge entrenched services such as Netflix, YouTube, and Amazon Prime, which have been increasingly challenging the established media-entertainment world of Hollywood.

Apple declined to comment on a Wall Street journal report on its billion-dollar budget for new content. Analysts consider original, exclusive content imperative for fielding a viable video streaming service, something that Apple has yet to do despite being early to market with an Apple TV set-top box linked to the internet.

"If Apple wants to stay relevant they have to go into the subscription streaming space, and that means original content," said Jackdaw Research chief analyst Jan Dawson.

Analyst Paul Verna at eMarketer said video fits nicely into Apple´s business strategy: "Content is a vital missing link that could help Apple complete a powerful ecosystem of programming, devices and services," he said.

Global streaming television king Netflix is expected to spend about $7 billion this year on content, with slightly less than half of that money going to making its shows it can distribute how and where it wishes.

Netflix recently ordered a new animated adult comedy from "The Simpsons" mastermind Matt Groening. The Silicon Valley-based company is also buying comic book publisher Millarworld, creator of popular series including "Kick-Ass" and "Kingsman."

Netflix said in a statement the deal was part of the company´s effort "to work directly with prolific and skilled creators and to acquire intellectual property and ownership of stories featuring compelling characters and timeless, interwoven fictional worlds."

Netflix describes itself as the world´s leading internet television network, with 104 million members in more than 190 countries. During a recent quarterly earnings call, Amazon executives once again vowed to ramp spending on original shows this year as the internet giant chases after Netflix with is Prime service. While Amazon doesn´t reveal exact figures, its budget for shows is said to be in the billions of dollars. Google continues to make a priority of content for YouTube, which features a subscription service along with free shared video posts.