J.P. Morgan: Apple’s media partners are still in the dark

Analyst Alexia Quadrani and her team took a Hollywood studio tour.

From a note to clients that landed on my desktop Friday:

We recently held meetings with senior executives at several of the entertainment companies we cover, in addition to private firms in the industry. Our conversations were with division heads, in addition to senior management at the corporate level. In this note, we summarize key themes and takeaways.

While we met with several companies participating in Apple’s upcoming video service, none seemed to have a clear sense of what will exactly be announced on Monday.

There is some consensus however that the product will include free original content plus a number of channels that consumers can purchase or view in one app using a single sign-on. For premium networks participating in the service, terms are similar to those received from Amazon, including economic splits and brand attribution.

Regarding Apple’s programming strategy, execs we met with said the tech company is not a volume buyer and to date has purchased a limited amount of library content, and is instead focused on a smaller number of prestige shows. While we believe Monday’s announcement will focus on these originals (much of which has already been covered in the press), Apple’s goal is said to be consistent with its overall services strategy, which entails taking a fee (30% in year 1, 15% thereafter) on distributed media.

My take: Measured by Hollywood’s gossipy standards, Apple must seem very tight-lipped.

3 Comments

  1. victor castroll said:

    i’m hearing it’s actually  who’s in the dark.

    keynote came around real quick and deals didn’t get done.

    what was booked as a show will actually be improv on monday.

    welcome to hollywood .

    0
    March 22, 2019
    • Ralph McDarmont said:

      As an eternal Apple optimist I can’t imagine the company has dropped the ball. I expect to be dazzled by all the work and brilliance put into this project. Monday will be fun. Enjoy

      2
      March 22, 2019

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