Original Apple TV Content Makes Sense, Says JPMorgan

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JPMorgan’s Rod Hall said that Apple Inc. AAPL is reportedly considering original TV content. The company is said to be attempting to pitch studios and producers on investing in exclusive TV shows, with the objective of launching a streaming Apple TV service.

Apple reportedly began approaching Hollywood's creative community in late 2015, although the company has not entered into any agreement as yet. One of Apple’s plans is to have deals in place so that the company could announce exclusive content as part of its cable-like offering in September.

“Apple is seemingly serious in pursuing its plans to launch the TV streaming service, following the reported pause in plans due to resistance from media companies last December,” Hall wrote. He added that a TV service is likely to accelerate the adoption of Apple TV hardware into homes and “more importantly drive more app store revenue which is a possible source of earnings growth as shown by our detailed analysis.”

Hall has an Overweight rating on Apple.

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Posted In: Analyst ColorLong IdeasReiterationAnalyst RatingsTrading IdeasJPMorganRod Hall
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