“To say that Apple results were looked upon as a disappointment this past week would be an understatement,” Jay Somaney writes for Forbes. “The company reported good enough numbers for the December quarter but March guidance was lowered below Street estimates which disappointed investors.”
MacDailyNews Take: Yes, the largest quarterly profit ever recorded by a single public corporation is certainly a disappointment… to an idiot.
“A couple of weeks ago, Netflix NFLX -2.20% also reported numbers that were looked upon by investors as a disappointment and the company has seen its own market cap reduced by 31% since making all-time highs in December 2015,” Somaney writes. “Towards the end of last week chatter picked up that Apple was still looking at unveiling a streaming TV service later this year. BGR came out with a report late in the week that said that Apple was already in negotiations with television networks to offer a streaming service in order to compete with Netflix NFLX -2.27% and Amazon’s Prime Video service. In addition, according to the street.com, Apple is hot and heavy in talks with Hollywood honchos to develop original TV shows and to negotiate other content deals to be offered on iTunes.”
“One way to circumvent the tedious and lengthy negotiations process with Hollywood and the networks is for Tim Cook to make an offer to buy out Netflix lock, stock and barrel. Netflix shares are off 31% from its all-time highs made less than two months ago and Apple shares have not exactly set the world on fire in the last year or so,” Somaney writes. “Both companies are in need of a kick-start.”
Read more in the full article here.
MacDailyNews Take: Until Apple actually buys Netflix, we’ll keep saying that Apple will buy Netflix for the same reason they bought Palm.
Apple’s Internet TV service will have to have ESPN. It will also likely require the “Big Four” networks (ABC, CBS, Fox, NBC) – although it could launch with three out of four and eventually hammer out a deal with whichever one is being the most reticent. That said, having already missed the launch of the new Apple TV, Christmas 2015, and the Chinese New Year, Apple might as well wait until they have a full dance card.
What others networks should be considered to be must-haves?
Beyond the Big Four, if you go by primetime ratings (total viewers), the top 20 U.S. cable networks are:
1. ESPN
2. Fox News Channel
2. USA
3. TBS
4. Disney
5. Discovery Channel
6. History Channel
7. TNT
8. HGTV
9. Nickelodeon
10. AMC
11. Adult Swim
12. FX
13. Cartoon Network
14. Food Channel
15. Lifetime
16. ABC Family
17. Syfy
18. TLC
19. Hallmark
20. Investigation DiscoverySource: Nielsen estimates, Live plus-3 for Dec. 29, 2014 – Dec. 16, 2015 (M-Su 8-11 p.m.)
SEE ALSO:
No, Apple is not dying and neither is the iPhone – January 27, 2016
Piper Jaffray: iPhone to resume growth in 2016 despite poor macroeconomy – January 27, 2015
Apple reaps $18.4 billion quarterly profit, the largest ever recorded by a single public corporation – January 26, 2016
Apple beats on earnings; sets all-time records for revenue, net income, and EPS – January 26, 2016
MacDailyNews presents live notes from Apple’s Q116 Conference Call – January 26, 2016
Apple beats Street with all-time record quarterly earnings – January 26, 2016
Why Apple should buy Netflix – January 7, 2016
CBS CEO Moonves says Apple puts live TV service ‘on hold’ – December 8, 2015
Fox’s James Murdoch, CBS’s Les Moonves hint at looming Apple Web TV service launch – November 5, 2015
CBS CEO Moonves says Apple TV content deal is likely – October 14, 2015
CBS CEO: We’re still in negotiations with Apple over new Internet TV service – May 27, 2015
Not sure I like a device mfg buying Netflix … I think one of its strengths is that it’s device agnostic.
Content is king. Apple did not buy up a bunch of recording companies to populate iTunes. They served content. Video is just a slightly different content and should not be confused with tv networks. Apple doesn’t need no stinkin’ networks. They need content.
The reason to buy Netflix is the original content. Access to a crappy selection of direct to video content and the odd hollywood blockbuster is not enough to justify a subscription in the long term. They have shown they know how to make great shows. That archive of content will be worth it in the future.
Yeah right, by a company that is overvalued and could have the rug pulled out under its feet at anytime by the content providers.
Why do these people keep saying an Apple TV service will compete with netflix and Prime video? It will compete with cable and satellite subscriptions and easily destroy them if they can pull off the deals. A skinny bundle TV service on the AppleTV 4 thats also automatically available on your Mac and iOS devices would be awesome.
Apple didn’t buy Palm!!! Apple didn’t buy Palm!!! Apple didn’t buy Palm!!!
Buying Netflix doesn’t work, the contracts signed by Netflix DO NOT TRANSFER OVER IF THEY ARE BOUGHT OUT!!!
So Netflix would be Apple Only then? Yes! Then those cheapskates who use Google Android will be stuck illegally torrenting their programs to their devices. They are already using stolen goods anyway so it only makes sense for them to bit torrent videos.
It should be noted at Apple can’t buy whatever it wants, it can only buy what’s for sale. Netflix is doing phenomenally well, there’s no reason to think they want to sell their company.
Apple has iTunes movies and TV shows. Right now they’re using an outdated and consumer-hostile rental model. Apple could do what they did when they transformed their music store into their music subscription service. Negotiate deals with the studios where people pay a monthly fee and have access to all of iTunes movies and TV shows. Will it happen? Not sure. If it did, it would be at least $20/month. But don’t think it’s impossible…there was a time when the idea of content providers allowing Apple to open the entire iTunes music store so that you can have every song in the world for $10 a month seemed like an impossible pipe dream.
Its wont happen as streaming does not make the studios or artists money. Look at Netflix most of the movies are older movies and Netflix actiually does not make a profit
Why would Apple need to buy Netflix if they wanted a streaming video service they could make one easily they have the infrastructure in place already with Itunes little cost to them. This artical is written by a stupid analyst probably same guy that told Time Warner to merge with Aol and we knowhow that ended.
They need to get The Premier, The Champions, La Liga and The Bundesliga.. maybe MX and Copa Libertadores. While at it
The Euros. Then watch everyone get a AppleTV….
In order to bring these network people to the table, Apple has to create content. Amazon has the right idea, just poor execution.
Do you actually know what it takes to create stunning content? I just don’t believe Apple has the DNA to make that content and sure it can ‘buy’ in the producers but can it produce consistently stunning content year after year?
If Apple was really serious about building their own library, they would create a totally separate company.
Most content deals contain clauses that make them null and void if the company that made the deal is acquired or sold. Apple would have to strike new contracts with all of the content suppliers who would no doubt try to strike harder bargains.
In other words, they would be in the same boat they are now, except they would have paid billions of dollars for a massive stable of customers they may not be able to deliver to.
Why can’t they have some sort of Apple Prime? Music and video streaming on iTunes, maybe even free 2 day shipping from Apple Store too lol. iTunes Prime would work well I think.
Apple isn’t that sort of company. There will be no discounts given by Apple because they believe it would cheapen their brand. I think your idea is fine but I don’t want them to do it. There are other ways Apple can make money. There are plenty of upscale businesses that never discount their products. Apple isn’t going to become a market share-chasing company.
Netflix would be a waste of money. Apple needs content but doesn’t need Netflix. Netflix is overvalued. I think it’s a Wall Street darling because they believe it has unlimited growth or something. A company that makes as little revenue as Netflix when added to Apple would hardly produce the revenue growth Wall Street is demanding from Apple. It might get investors excited for awhile but I think the excitement would quickly wear off in a couple of quarters.
I’m thinking Apple shareholders should stop hoping for a quick fix regarding Wall Street’s distaste for Apple. They’re looking for Apple to pull an elephant out of a top hat and I don’t think that’s remotely possible. A small rabbit like Netflix isn’t going to impress greedy investors.