“Netflix’s rapid subscriber growth could make it a formidable competitor to iTunes, and an attractive acquisition candidate for Apple,” Sanjay Sanghoee writes for Fortune.

“Streaming video provider Netflix recently reported record subscriber growth of 2.3 million in the U.S. and 2.6 million internationally for the first quarter. The company now boasts 62 million subscribers worldwide,” Sanghoee writes. “Much of Netflix’s growth is being driven by its successful expansion overseas, as well as a rollout of new original programming series, such as Marvel’s Daredevil, Bloodline, and a renewal of existing hits like House of Cards and Orange is the New Black. The company also stands to benefit from consumers who don’t want to be tied to expensive cable and satellite packages in order to secure their entertainment.”

“Netflix will need healthy amounts of cash in order to finance its foreseeable growth,” Sanghoee writes. “For these reasons, the company is ripe for acquisition, and a company like Apple would be remiss if it didn’t seriously look into a deal. Apple has both the means and motivation to acquire Netflix, and while the movie and television business may not be Apple’s prime focus, it certainly can’t afford to stand on the sidelines while a player like Netflix takes over the market.”

Read more in the full article here.

MacDailyNews Take: Of course, this is why Apple bought Palm in order to “compete” in smartphones.