Since Apple introduced the Apple TV digital media player to the market in 2007, the media and entertainment industry has struggled to secondarily speculate on some of the movements and ambitions around the tech giant. The launch of iTunes in 2001 has already overturned the global music market, but many expected Apple to do the same in the entertainment world.
At that time, the future of television would be in the app, as we said. Companies like Apple and later Google will be there to offer them on competing iOS and Android platforms.
These developments helped usher in the era of connected TV, but other factors were also involved. Most importantly, after cord-cutting has passed the turning point and viewers have gone online, cable and satellite stations have decided to adopt digital platforms. ..
In 2007, it was highly unlikely that Silicon Valley tech barbarians would one day kick off Hollywood’s golden gates and attack a dense fortress of broadcast networks.
However, 2007 was also the year Netflix moved from a DVD rental company to a content streaming company. Since then, it has grown exponentially and now has more than 222 million paying subscribers.
Apple TV is now in its fourth generation, but Cupertino-based companies have taken another 12 years to understand the next move in the entertainment space before launching the Apple TV + in 2019. rice field.
Already successful with iTunes and its successor, Apple Music (now the second largest music streamer after Spotify), there was a compelling business case to get customers to subscribe to the new streaming service.
However, as the company knows, the content creation business is a costly business.
Last year, Apple spent $ 2 billion on creating Emmy-winning films, documentaries, and series. Ted Lasso Even if Coder When Morning show..
This investment looks insignificant when compared to Netflix, which spent an estimated $ 14 billion on various content in 2021. In 2021, even technology giant Amazon spent $ 8.5 billion on MGM and about $ 9 billion.
But Apple has always been surprised, and the announcement last week that it signed a $ 2.5 billion broadcast rights deal with Major League Soccer in the United States is a good example.
The deal follows an agreement with Major League Baseball announced earlier this year to broadcast a Friday night match. It also challenges something like Amazon busy signing similar broadcast contracts in basketball, American football, soccer and tennis in countries such as the United States, United Kingdom, Italy, France and Germany. Traditional media.
Since Google and Facebook began selling ads, the same traditional media has been skeptical of Big Tech and its ambitions and intent.
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Apple CEO Tim Cook.Photo: Bloomberg
According to some analysts, Apple earns a small amount of money from advertising (less than 0.4% according to some analysts), but it could see it as an opportunity in the post-cookie world. We’ve been on this path with iAd mobile products, which were discontinued in 2016, but some analysts believe it’s easy to get back into the advertising market and become a serious player.
With a market capitalization of $ 2.2 trillion and $ 73 billion in cash on the balance sheet, Apple can fund any acquisition, including one of the leading studios such as Disney +, Netflix, and Lionsgate. At a whole new level, to a much larger audience base.
Despite the potential regulatory challenges, growing audiences within the Apple ecosystem can also increase advertising revenue.
But in reality, Apple is still by far the tech company, with most of last year’s $ 378.3 billion in sales coming from iPhone and iPad whiplash. This will not change immediately.
In the meantime, Apple seems very happy to play a supporting role in the global entertainment and media industry.
How long is the problem?
ICAD Creative Wins Prizes
The public house won the grand prize of the annual ICAD Creative Awards held last week. The agency has won five gold awards, four silver awards and thirteen bronze awards. This includes one of the Indian Daily Podcasts.
Other big winners of the night included BBDO Dublin, Publicis Dublin, In the Company of Huskies, Core and TBWA Dublin.
Meanwhile, the Lifetime Achievement Award was given to Mike Garner, the core creative director.
AdNet Zero establishes shop
After AdNet Zero was launched in the UK in 2020, this initiative has been rolled out in Ireland to help the broader marketing communications industry respond to climate change.
It is led by the Irish Advertising Practitioners Association and includes IAB Ireland, the Irish Marketing Institute, the Irish Advertisers Association and the Irish Commercial Producers. AdNet Zero’s Irish leg joins the AdNet Zero Steering Group.
