Apple’s next business could be movies

Apple’s (AAPL) strategy for its online video services has been floundering for quite some time now. The tech giant who is serious about online video cannot afford to fail. Latest rumors suggest that Apple is planning for something big in order to compete with Netflix (NFLX) and Amazon (AMZN) and the plan includes making movies. Yes, in future we might be watching Apple movies.

Reports according to Bloomberg suggest that Apple is aiming to expand its services into the movie industry as well. It is said that the iPhone maker is in deal talks with Cartoon Saloon, an Irish animation TV, and film studio. Apple is eyeing the distribution rights for an untitled movie from the Oscar-nominated studio.  The movie, which might get a theatrical release, will be available only after a couple of years. The California-based company is yet to finalize the deal.

It is said that the iPhone maker is in deal talks with Cartoon Saloon, an Irish animation TV, and film studio.

The reason why Apple is determined about TV and video content is that CEO Tim Cook wants to boost the revenue generated from services business that includes iTunes, Apple Music, and the TV app by 2020, according to Bloomberg.

This move by Apple shouldn’t come as a surprise to anyone, considering its recent hires; Zack Van Amburg and Jamie Erlicht, the two veteran entertainment executives from Sony. Under their leadership, Apple struck several major TV deals and is betting big in the video streaming space, as the tech mogul puts itself in direct competition with Netflix, Youtube, and Amazon Prime.

Apple has even signed a multiyear deal with media giant Oprah Winfrey. Under the terms of the deal, Apple and Winfrey will jointly create programs which will be a part of Apple’s original content. Post the deal, she will continue to run her Oprah Winfrey Network (OWN).

This year, Netflix plans to spend $7-8 billion on content alone, while Amazon is expected to spend $5 billion. Apple has invested $1 billion in buying and selling its own video content.