Apple Reportedly Investing $1 Billion to Try and Out-Netflix Netflix

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The new hire for Apple comes amid reports that the company has set a whopping $1 billion budget for original programming, an amount that moves it closer to the budgets of rivals including Amazon, HBO and Netflix.

Apple has also hired Matt Cherniss, who until recently was president of Tribune Media Co.'s WGN America cable network, to head development.

With so much money to burn from its yearly earnings, theWall Street Journal reports that the multinational tech company has chose to dabble with the production of original television, planning to spend $1 billion in its new endeavor.

Over the years every new Apple launch has repeatedly proven that the company doesn't do things by halves.

Currently, Apple has Planet of the Apps and Carpool Karaoke but neither are exactly killing it.

But that era lacked a cohesive strategy, with various Apple execs involved in shows on a case-by-case basis, according to insiders.

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Obvious as that may sound, finding and developing the next "House of Cards", "Transparent", or "Handmaid's Tale" is easier said than done. However, by tech standards the figure does not suggest vaulting ambition. They took over leading programming duties earlier this month.

"We have exciting plans in store for customers", Cue said in announcing the hiring of Van Amburg and Erlicht, adding: "There is much more to come."

There is no reliable information on how Apple plans to disseminate these shows, though Apple TV - or a new dedicated channel on it - makes the most sense. While they're only spending $1 billion in the first year, the company has the ability to up that investment significantly in the future, should they scale up this effort.

The reports that Apple is also dipping its fingers in these waters originate from The Wall Street Journal, which published an article about the considerable sum the company is setting aside for movie production.

If this story has legs, chances are we'll hear more about it then. As for now, share your views on the scenario in the comments.

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