This story was delivered to BI Intelligence "Digital Media Briefing" subscribers. To learn more and subscribe, please click here.Apple is hoping to bring original TV shows and movies to Apple Music by the end of 2017, The Wall Street Journal reports, in a move that would broaden the technology giant's ambitions as a media company and turn it into a more fearsome competitor in Hollywood and the music and video streaming industry.Apple has been in talks with industry heavyweights in recent months about buying original scripted content. Discussions have been held with experienced TV producers about buying rights to shows, and with marketing executives at studios and networks about promoting this content. Apple has told these counterparties that it hopes to start offering original scripted content by the end of 2017.Heres a preliminary glimpse at what Apple may be planning. First, Apple hasnt fully figured out its strategy yet, which is part of the reason why it hasnt closed a deal to buy content. But it looks like the company wants to acquire a small number of high-quality original scripted TV shows somethingakin to HBOs Westworld and Netflixs Stranger Things. Original films are also on table, but less of a priority for now.Apples plan is being framed as a play against Spotify rather than Netflix et al. The Wall Street Journal suggests that Apple isnt looking to spend hundreds of millions of dollars to buy content, which means its ambitions are much more modest than the likes of Netflix, Amazon, and premium cable networks that invest billions in it annually. Instead, Apple is planning to use original TV shows as a way to distinguish itself from Spotify, its main music-streaming rival.But Apple has the cash to go toe-to-toe with Netflix and Amazon should it want to. The company is sitting on well over $200 billion in cash. Allocating just 1-3% of this hoard toward original content would bring it into direct competition with Netflix and Amazon, which are each estimated to spend upward of $6 billionthis year. This initial foray into original content could set the stage for Apple to move more boldly in the space in the future.And expanded video offerings advances Apples aim as a services company. Venturing into original TV and films would help Apple diversify its revenue streams amid flattering iPhone sales. In the past year, Apple has emphasized its services businesses which includes Apple Music, Apple Pay and iCloud in the wake of decelerating sales across the rest of the company. Revenue from services was up 24% in Q4 2016, as total revenue dropped 9%.Growth of subscription-video-on-demand (SVOD) services in the US has slowed considerably over the last year as competition in the online video streaming space intensifies. Heavy hitters likeNetflix, Hulu, and Amazon Prime are increasingly squeezed by new competitors with exclusive content and niche video offerings. International markets, and specifically, the Asia-Pacific (APAC) region will be paramount for both established SVOD players and new entrants looking to establish themselves in the successful video space.The SVOD market in the APAC region is poised for explosive growth over the next five years due to increased mobile adoption, amplified broadband expansion, and enhanced purchasing power.Dylan Mortensen, senior research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on subscription video on-demand that explores how slowing SVOD growth in the US will lead to a surge in the APAC region.Here are some of the key takeaways from the report:While SVOD services are increasingly rooted among US households, growth is beginning slow. Growth in North American SVOD subscriptions is set to fall from 30% in 2014 to 4% by 2018.The best opportunity for continued growth lies in the Asia-Pacific (APAC) region. The region had nearly 42 million SVOD subscribers in 2015, but could have up to 158 million by 2021.The increasing adoption of smartphones and mobile data is propelling growth in mobile video viewing across APAC, which is poised to outpace the rest of the world.Rising purchasing power in APAC underlines the opportunity for online video services. China and emerging Asian economies represent nearly two-thirds (63%) of global economic growth.Content creators and marketers stand to gain from SVODs push into the APAC region. Content creators can benefit from the surge in short-form video, while marketers can capitalize on advanced product placements.In full, the report:Forecasts SVOD subscribers in the APAC region.Explores the factors behind SVODs slowing growth in the US.Breaks down reasons why APAC is ripe for massive online video growth.Discusses who will benefit from SVOD growth in APAC.Interested in getting the full report' Here are twoways to access it:Subscribe to anAll-Access pass to BI Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensureyou stay ahead of the curve and benefit personally and professionally.START A MEMBERSHIPPurchase & download the full report fromour research store.BUY THE REPORTJoin the conversation about this story
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