Tech giants make major TV push
Apple has more than $1billion (U.S.) budgeted for original programming, Facebook wants its own version of Scandal and Google is ready to spend up to $3 million per episode on a drama.
The three digital giants have signalled to Hollywood that they are serious about entering a TV landscape that Netflix and Amazon shook up just a few years ago.
Their arrival will make an already hypercompetitive industry even more ferocious. This year, there are expected to be more than 500 scripted TV shows, more than double the number six years ago.
Although there have been some signs that the industry’s output may plateau, the entry of Apple, Facebook and Google into the fray almost guarantees that the volume of shows will continue to grow, even as viewers grapple with a glut of programming and an expanding number of streaming platforms.
The arrival of Facebook, Google and Apple will make an already hypercompetitive industry even more ferocious
With the prospect of a flood of tech money about to rush in, Hollywood has welcomed the news.
“If you ask the creative community if we’re going to be competitive, the answer is yes,” said Robert Kyncl, chief business officer at YouTube
Still, many in the industry are taking a believe-it-when-we-see-it approach to new players. Netflix and Amazon have made successful forays into scripted entertainment, but some efforts by digital titans, such as Microsoft and Yahoo, have fizzled.
Scripted television is enormously expensive, so any commitment to it must be sincere. From shooting on location to taking out insurance to paying actors, crew members, directors and writers, it is impossible to dive in without allocating plenty of cash, while also being patient enough to weather blows at a time when it is increasingly difficult to land a signature hit.
The moves also come amid a fierce arms race for content. Netflix recently poached Shonda Rhimes from ABC, whose parent company, Disney, is preparing its own stand-alone streaming services.
But Apple’s wealth and its willingness to commit resources have sent shock waves through the industry. Two months ago, the company chose Sony’s television studio heads, Jamie Erlicht and Zack Van Amburg, to lead its programming efforts.
Erlicht and Van Amburg were certainly regarded in Hollywood as talented studio executives, having shepherded hit series such as The Crown and Breaking Bad. But their move to Apple — and their program- ming budget of a little more than $1billion — has suddenly made them among the most powerful executives in television.
That budget puts them on a par with the most elite programmers in television. FX, which makes shows like American Horror Story and Fargo, has a programming budget of around $1 billion. HBO’s budget is believed to be around $3 billion and Netflix will spend about $6 billion on content this year.
It is not clear how people will be able to watch or pay for Apple’s original programs. Without any current acquisitions, it will take at least a year for any of the company’s projects to be ready for the viewing public. The entertainment drive is also unique from Apple Music and it is possible that a new app will be made to stream the new original series.
But as Apple starts to gear up, Facebook is well on its way. The company’s Hollywood development team is led by Mina Lefevre, previously of MTV. Facebook has told people in the industry that it is willing to spend $3 million to $4 million an episode on new programming, according to a person familiar with their plans. That kind of spending would put the company on an equal footing with many broadcast and cable networks.
Facebook has indicated it wants shows that are attractive to people in their midteens up to those in their mid-30s, along the lines of frothy fare like The Bachelor, Pretty Little Liars and Scandal. Those shows generate plenty of talk on social media platforms, and Facebook executives are apparently dedicated to programming that they believe will ignite conversation on the social network.
Unlike Netflix, which releases all episodes of its series at once so that they can be binge-watched, Facebook is expected to release episodes on a more traditional schedule (it is unclear whether that will be once a week). Facebook also plans to have midroll ads, or brief commercials, during episodes. Facebook will soon unveil a “Watch” tab, where users can find the original series and other video content that will be less expensive to make.
YouTube is in the process of greenlighting series. Like Facebook, the Google-owned video site is focused mainly on series that appeal to 16- to 35-year-olds, according to a person briefed on the plans. YouTube executives have said they will spend up to $2 million an episode on a comedy, and more than $3 million on a drama, this person said.