What's going on?

Apple has hired two top television executives from Sony to help it launch an original content business with the aim of competing against the likes of Netflix and Amazon Prime.

What does this mean?

Apple already has Apple TV, but it simply acts as a platform on which distributors like Netflix and Hulu exist. It now wants to create shows of its own, and charge users a fee to watch them. Apple�s music-streaming service, Apple Music, has already dabbled in video content (including an upcoming Carpool Karaoke show). It�s not yet clear if Apple�s future efforts will continue to be hosted on Apple Music, or if it will develop a separate video platform, but it is now clear that it�s going to get much more aggressive in producing its own content.

Why should I care?

For markets: Apple�s services business is becoming increasingly important.

Selling iPhones and other hardware remains the biggest part of its business, but revenue from its �services� segments (like Apple Pay, the App Store and Apple Music) are growing much more quickly. That transition has helped provide a big tailwind for the stock price this year, which is up almost 25% in 2017.


The bigger picture: It�s a good time to be a content producer!

We�re living in a golden age for content production as firms like Netflix and Amazon Prime (and now Apple) spend lots of money developing shows in order to attract viewers. Facebook is also making a big push into video content. Traditional television may be struggling with declining viewers, but content producers are getting busier � and viewing options for the rest of us keep getting better!