Apple Wants Content To Compete With Spotify

Apple Inc. AAPL wants to enter the Hollywood space and create its own TV show and movies with the ultimate end goal of better competing against Spotify.

Spotify, the music-only streaming provider, would be Apple's biggest competitor in the streaming space - not Netflix, Inc. NFLX or HBO Now, at least according to Recode's Peter Kafka.

Kafka argued that Apple has no desire to become a streaming video service provider, rather it wants to add TV and movie content to make its Apple Music platform stronger and better compete against Spotify which is the market leader.

Apple has been trying to gain the upper hand in the music space by negotiating with artists like Frank Ocean to release their music exclusively to Apple's platform. Apple has also been financing exclusive video projects for Taylor Swift, Drake and Ocean.

These projects fit in to Apple's marketing initiatives for its music platform and creating TV and film content will be done with a similar objective.

Granted, this theory isn't as exciting for TV and movie fans who are hoping Apple will become the next HBO. In the meantime, it's unclear how some of Apple's shows in the making, including "Planet of the Apps" will help sell a music subscription.