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Barron’s has a story pointing out that Apple has said it plans to “spend $1 billion on original video content for its Apple Music service, far less than what Netflix, Amazon.com, or HBO pay annually.”

While the story suggests that “Apple’s clean-cut reputation could hinder its ability to produce the same kind of thought-provoking content that’s netted awards for the major streaming players,” the story also posits that Apple may be more interested in competing with Spotify, rather than with Amazon, Netflix and HBO.

Here’s the logic: “Apple has made the somewhat puzzling decision to house its original content within Apple Music, its subscription music service, because it wants to give users a reason to choose its service over market-leader Spotify. That service was years ahead of Apple in terms of offering an on-demand listening, and many iPhone-wielding Spotify users haven’t found reason to switch to Apple Music.

“Spotify has about 50 million paying subscribers, while Apple has 27 million,” and one analyst estimates that “Apple would need to add just 7 or 8 million more customers to recoup its $1 billion in content spending (over three years).”
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