Hello, I’m at SXSW and Apple’s Eddy Cue is about to speak. Expecting him to (hopefully) talk about their growing content ambitions/why they are buying shows left and right. Will tweet highlights. #SXSW18
Cue starting by saying that Apple has acquired Texture, an iOS app that aggregates magazines. Assume this is to bolster Apple News from a layout perspective.
“Generally, the history of Apple, we haven’t made huge acquisitions.” - Eddy Cue when asked if Apple will buy Netflix or Disney. Talking about the trend of cord-cutting and on-demand video. “We think there’s a real change coming in the marketplace” as to where people get content.
“We’re not after quantity, we’re after quality” - Cue when asked about Apple’s strategy behind buying the couple dozen or so show projects it has so far. Compares Apple’s approach to Pixar storytelling. Hints at “surprises” coming for the viewing experience.
“We’re making big investments” financially, says Cue, re: the billions Netflix is spending on original content. “Money isn’t an issue.”
Says he was looking for the right person to head up Apple’s TV content business for two years. Now they have about 40 people working on it.
Says he was looking for the right person to head up Apple’s TV content business for two years. Now they have about 40 people working on it.
On sports, Cue says Apple is for now focusing on “augmenting the experience” through apps, push notifications. So not buying rights.
“The ramp-up curve” for nascent tech like AR is hard to navigate, says Cue. Chicken and egg problem with the software and hardware needed. ARKit is meant to seed the developer ecosystem. He’s not saying it but clearly hinting that dedicated hardware is coming.
“We are very, very optimistic and think it’s going to be huge,” says Cue on AR. Says it will be “mainstream” and something everyone uses every day. Says that AR hardware will have to do everything better than an iPhone first though.
Cue says Apple is in a “better position” than Facebook, Google, etc. from a regulatory perspective because Apple doesn’t make money from ads. Won’t comment on whether FB or GOOG are taking the right stance on protecting user data.
Apple Music has 38 million paying subscribers, says Cue. Both Apple and Spotify have to “grow by significant amounts” before the streaming model becomes a good business for companies, labels and artists. The chase for scale.
“It’s the best musicologist there is,” says Cue about the Homepod. OK? Says Apple is happy with initial sales.
