Apple is taking a page from Netflix's Playbook – The Motley Fool


Since he embarked on his path to dominate the streaming more than a decade ago, Netflix (NASDAQ: NFLX) it took a number of strategies to continue its impressive growth. After experiencing Lilyhammer at the beginning of 2012, the company launched its first original series – Castle of cards – in February 2013. While many shows have been branded as originals by Netflix, other companies have owned the content and have retained control of future license offers.

Netflix has evolved again, taking ownership of some of its programs, thus simplifying distribution operations around the world. The company has taken a further step forward in the last few years, finding showrunners and creators with impressive track records and locking them in multi-year contracts to produce original programs for Netflix.

In a move that validates that strategy, Apple (NASDAQ: AAPL) is taking a page from the giant's playbook in streaming, making fun of a famous showrunner.

Business man pulling a stack of $ 100 bills from a table

Streaming is paying for showrunners. Image source: Getty Images.

Exodus to the streaming

The creator and TV showrunner Emmy and Peabody Award winner Jason Katims, best known for his work in successful shows such as Friday night lights, paternity, Boston audience, is Roswell, is leaving his old home at Universal TV, a division of Comcast (NASDAQ: CMCSA)and has signed a multi-year agreement with Apple that will start when its current contract expires this summer.

This is the last of a growing list of the best talent that creates original programs for Apple. The company had plans to spend up to $ 1 billion in content over the last year, and signed a bevy of family names to make it happen, including Reese Witherspoon, Jennifer Aniston, M. Night Shyamalan, JJ Abrams and Oprah Winfrey.

While the company has not made any official announcement, many believe that Apple is preparing to launch its streaming service, which could already debut this year. If this is the case, it would do much to explain why the company is following in the role of Netflix enlisting the talents of some of Hollywood's most famous names, as well as inking agreements directly with the showrunners themselves.

A growing stall of great talent

Poaching has noted that producers and showrunners with proven track records are a strategy that Netflix has used extensively in the last two years. While there was a multitude, different stand out.

The producer, director and writer-in-chief of Emmy, Golden Globe and Peabody Award Ryan Murphy has signed a five-year deal with Netflix at the start of last year which could be worth up to $ 300 million. Murphy left his old house in the TV studios of Fox of the 21st century (NASDAQ: FOX) (NASDAQ: FOXA). Murphy is best known for his work on award-winning shows including Nip / Tuck, Joy, history of American horror, is American Crime Story.

Netflix has also collected a prolific successful writer, producer, and TV producer, Shonda Rhimes, who has gone Disney& # 39; S (NYSE: DIS) ABC television network and signed a four-year pact with Netflix valued at a value of $ 100 million. Rhimes may not be a household name, but the well-known showrunner has created some of the most famous television hits, including Gray & # 39; s Anatomy, Scandal, is How to get away with murder.

A man pointing a remote control in a blurred television.

The creators of television are switching to streaming. Image source: Getty Images.

Kenya Barris also left a post to ABC to join Netflix, signing a three-year deal with the streamer that could exceed $ 100 million. Barris has been instrumental in some of the network's best hits, including Blackish, Grown-ish, is Girls Trip.

imitation is the most sincere form of flattery

Apple's content growth ambitions are well documented and, if the company is planning to enter the crowded streaming market, it could do worse than copying the field leader. Netflix has amassed 139 million streaming customers worldwide, and while I am a keen Netflix fan, I believe Apple is one of the few competitors that could take Netflix significantly.

This could be the last sign that the competition is coming for Netflix.

Danny Vena owns shares in Apple, Netflix and Walt Disney and has the following options: long-January 2019 $ 85 calls on Walt Disney. Motley Fool owns shares and recommends Apple, Netflix and Walt Disney. The Motley Fool has the following options: long January 2020 calls for $ 150 on Apple and short January 2020 calls for $ 155 on Apple. Motley Fool recommends Comcast. Motley Fool has a disclosure policy.