“Netflix is fueling a surge of revenue growth for Apple’s App Store, according to data released by analytics firm Sensor Tower on Tuesday,” Anita Balakrishnan reports for CNBC. “Spending rose 130 percent year-over-year in 2016 in the “entertainment” category of the App Store, which includes HBO Now, Hulu and Netflix, according to data from Sensor Tower. Netflix in particular saw revenue hit $58 million in the fourth quarter, up from just $7.9 million a year earlier, Sensor Tower said, in a report released on Tuesday.”

“Apple has said it wants to double its “services” revenue, including the App Store, by 2020,” Balakrishnan reports. “‘[I]f we wanted to do what everybody else is doing, then you’re right, we might be better off buying somebody or doing that,’ Eddy Cue, Apple’s head of content, said at Recode’s Code Media conference earlier this month. ‘But that’s not what we’re trying to do. We are trying to do something that’s unique.'”

MacDailyNews Take: Eddy thinks a screamingly derivative melange of “Shark Tank” and “The Voice” based on financing app development is not only “unique,” but also will sell Apple Music subscriptions, so… yeah.

Some might say that Eddy Cue is Apple’s Steve Ballmer. We wouldn’t necessarily disabuse them of that notion.

Balakrishnan continues, “Sensor Tower’s data shows why industry watchers, like technology investor Eric Jackson, have said Apple ‘clearly should have bought Netflix.'”

Read more in the full article here.

MacDailyNews Take: As as we wrote last May:

What is unique about Netflix? A handful of TV series are not worth $40 billion. Apple is perfectly capable of taking on Netflix without having to buy them, deal with integrating their employees, etc.

Until Apple actually buys Netflix, we’ll keep saying that Apple will buy Netflix for the same reason they bought Palm.

And, as we wrote earlier this month:

Now, Disney, for example, would be a much different story, as it teems with synergies for Apple Music, iTunes Store, iBooks Store, App Store, Apple TV, etc.

That said, there have been a number of smaller deals that Apple blew for whatever reason regarding specific content properties that could have made Apple TV quite a different proposition than it is today, including NFL Thursday Night Football streaming exclusivity and/or The Grand Tour, to name just two would-be game changers.

With the amount of money Apple has, even wildly overpaying for the right content in order to maximize the install base for things like Apple TV might prove to be a smart move over the long run.

SEE ALSO:
Apple’s Eddy Cue alienated cable providers and networks with an assertive negotiating style – report – July 28, 2016

Apple’s arrogance said to contribute to struggles to make big deals – February 15, 2017
Apple hires Amazon’s Fire TV head to run Apple TV business – February 8, 2017
Why Apple should buy Disney – January 26, 2017
Apple’s new TV app shows just how painfully behind Apple is – December 14, 2016
Apple approached Time Warner about possible merger before AT&T talks – October 21, 2016
Apple’s Eddy Cue: Nope, we don’t want to be Netflix – October 20, 2016
Google signs up CBS for planned web TV service to debut in early 2017; close to deal with 21st Century Fox – October 20, 2016
Bernstein: Apple buying Netflix would be a waste of $50 billion – October 5, 2016
A chance for an Apple buyout offer as Netflix stumbles – July 19, 2016
Here comes á la carte programming – without Apple – July 13, 2016
Should Apple absorb Netflix? – July 11, 2016
Apple to buy Netflix? – May 27, 2016
Should Apple buy Netflix for $53 billion? – May 10, 2016
Apple declines to place bid on NFL Thursday Night Football – March 3, 2016
Why Apple should buy Netflix – January 7, 2016
Apple TV 4 is a beta product and, if you bought one, you’re an unpaid beta tester – November 5, 2015
Apple made ‘audacious bid’ for Top Gear trio of Clarkson, Hammond and May, but lost out to Bezos’ Amazon – September 1, 2015
Why Apple should buy Netflix – April 21, 2015
Why Apple should buy Netflix – March 26, 2014
Jim Cramer: Apple should buy Twitter or Netflix to spur growth – February 7, 2013
The Netflix buyout battle: Apple vs. Time Warner – April 10, 2012