Credit: Shutterstock photoAs Apple (AAPL) slowly moves into original video content with a couple of shows, there's been a lot of speculation among investors and the media that it should just buy Netflix and be done with it.
While that may happen much further down the line, Apple seems less likely about going after what Netflix is and more about what it has -- an Oscar.
Former Piper Jaffray analyst turned venture capitalist Gene Munster believes Apple will win an Oscar relatively soon, perhaps in the next five years.
"We think Apple will win an Oscar in the next five years," Munster's firm, Loup Ventures wrote recently. "That’s how long it will take for Apple to scale its original content spend from less than $200 [million] today to $5-7 [billion]."
Netflix (NFLX) just won the first Oscar in company history for The White Helmets, a documentary about civilian first responder in Syria. Along with Amazon (which also won a few statues), Netflix is serious about changing how people watch and consume media.
Apple seems intent on doing that too, with Apple Music, though at a different level.
Apple is taking the slow route to original video content and is more likely to do what it did with Apple Music, buying a small company and partnering with creative geniuses (Jimmy Iovine and Dr. Dre) than buying a big company like Netflix. It's already started to do that with James Corden, buying Carpool Karaoke for Apple Music and partnering with producer Ben Silverman to bring Planet of the Apps, a reality show about app developers, to Apple Music.
The Financial Times reported it had looked at buying Ron Howard and Brian Grazer's Imagine Entertainment, but talks stalled. This is another example of Apple wanting to partner with titans of industry who can help shape the way consumers experience as opposed to buying a creative disruptor itself.
The Wall Street Journal has reported that Apple wants to make TV shows akin in quality to Game of Thrones for its Apple Music service. It's a natural extension that down the line, Apple would want to make similar quality movies available for its Apple Music subscribers as well, despite what Apple media czar Eddy Cue says publicly. (Remember, Apple is famous for eschewing something in public until it can make it better for its users).
No matter who Apple winds up partnering with down the line for video content, it's Apple's goal to remain culturally relevant. Cue has referenced MTV as a jumping off point for Apple Music, making the cultural relevant mission all the more relevant.
Investors shouldn't expect a Netflix-sized acquisition down the line, but don't be caught off guard when Apple Films is up for an Oscar next decade.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
