Watch Out, Netflix: Apple's Coming For You

According to a new report by Variety, tech giant Apple Inc. AAPL may soon be taking on rivals Netflix, Inc. NFLX Amazon.com, Inc. AMZN and Google Inc GOOGGOOGL in the original video content realm. Apple has reportedly held discussions in recent weeks with Hollywood executives about potentially producing video entertainment content.

Original Online Content Wars

There’s no question that Netflix has had the most success when it comes to drawing customers away from traditional cable television programming, and Netflix has also had a fair amount of success with original shows such as "House of Cards" and "Orange Is the New Black." Amazon has produced several original shows as well, although none have had the commercial success of Netflix’s top creations.

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Google’s YouTube has also yet to make a huge mainstream original content splash, but it recently hired former MTV programming chief Susanne Daniels to spearhead its original content push.

Apple’s Plans

One high-level Hollywood executive indicated that Apple intends to create development and production divisions with the goal of competing with Netflix by the end of 2016.

Although known for its innovative technology, Apple has demonstrated in the past that it is not shy about emulating the strategies of other companies as well. Apple’s recent launch of Apple Music is the company’s effort to capitalize on the success of streaming music subscription models used by rivals Pandora Media Inc P and Spotify.

Cash To Burn

Apple declined to comment on the story, and it’s unclear at this time whether the company intends to pursue television or movie content. However, shareholders of Netflix are likely uneasy about Apple’s track record of success and its $200 billion in cash on its balance sheet. Netflix’s entire market cap is currently only $49 billion.