“Although the negotiations are still in early stages, a precedent has been set for a more competitive online streaming market in the future. This does not bode well for Netflix, which has managed to post impressive growth over the years, capitalizing on its early market entry and competitive advantage,” Trefis Team writes. “Not only does Apple have the capability to attract a large customer base, its entry will also push content prices up. Also, if its streaming standards surpass those of Netflix, the latter will face some serious challenge, assuming Apple prices its service competitively.”
“Apple has more than enough cash to pay for some juicy content deals, including exclusive and original content, which makes it a very dangerous competitor for Netflix,” Trefis Team writes. “While the company primarily makes money from hardware sales, its recent moves suggest it has ambitions of controlling digital content distribution as well.”
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