×

UPDATE 3-Apple poaches top Sony TV execs to boost video content

(Adds analyst comments, updates trading)

June 16 (Reuters) - Apple Inc has hired two long-time Sony Pictures Television executives to expand the iPhone maker's push into original television programming, plunging deeper into a field crowded by Hollywood studios and online streaming services.

Jamie Erlicht and Zack Van Amburg, responsible for hit shows such as "Breaking Bad," "Better Call Saul" and "The Crown," will join Apple in newly created positions that will oversee all aspects of video programming, the technology giant said in a statement on Friday. The pair have been Sony Pictures presidents since 2005.

"Jamie and Zack are two of the most talented TV executives in the world and have been instrumental in making this the golden age of television," said Eddy Cue, Apple's senior vice president of Internet Software and Services.

"There is much more to come," Cue said of Apple's video effort.

Hollywood has been awaiting the entry of deep-pocketed Apple into original video series, an increasingly competitive market.

Social media giant Facebook Inc has signed deals with millennial-focused news and entertainment creators, including Vox and BuzzFeed, to make shows for its upcoming video service , while Amazon and Netflix have invested billions of dollars in award-winning comedies and dramas.

Apple began its move into the field last week, with a reality program called "Planet of the Apps," an unscripted show about developers competing for venture capital funding.

VIEWER DATA

The company's future programming includes an adaptation of comedian James Corden's "Carpool Karaoke" segment from his CBS show that will begin airing in August, and documentaries about Sean Combs and Clive Davis.

As tech companies push further into the content business, pressure mounts on traditional media companies that do not have the same amount of data on viewers or the ability for content to be a loss leader, said Rich Greenfield, an analyst with BTIG. "These companies do not need to make money off video because they can make money other ways," Greenfield said. "And they are going to have tons of data on their viewers."

While the news of Apples hires is a warning to legacy media companies in general, it is particularly bad news for Walt Disney Co, which had been rumored to be an acquisition target for Apple, Greenfield said.

"Its pretty clear now that Apple isnt buying Disney," he said.

Disney shares slumped 0.7 percent in afternoon trading to $105.21. Apple shares shed 0.6 percent to $143.35 per share.

Apple has one huge advantage compared to other media companies - 1 billion iPhones, iPads and other devices that run Apple's mobile operating system and offer a broad distribution platform for video programming.

For Sony, the departures come as the Japanese conglomerate revamps its movie and television studio under new Chief Executive Tony Vinciquerra. In a memo to staff, Vinciquerra suggested Apple could be a buyer of Sony programming.

"While we are sad to see them go, we are excited by the opportunity to work with them as partners in the future," he said. (Additonal reporting by Supantha Mukherjee and Anya George Tharakan in Bengaluru, Anna Driver and Jessica Toonkel in New York and Stephen Nellis in San Francisco; Writing by Franklin Paul; Editing by Bernadette Baum)