“Shares of Netflix remain within a few percentage points of their all-time high. The video-rental firm has had quite a run, with its shares up more than 150% in the past 12 months and nearly 1,000% in the past three years. Even lackluster forward guidance issued on the evening of Monday, April 25, only put a modest dent in this highflying stock. But behind the scenes, a major problem looms. And that problem’s name is Apple,” David Sterman writes for StreetAuthority.
“Any day now, Apple is expected to announce the formal opening of a massive new data center in Maiden, N.C. This center has been ready to go for several months, with its opening possibly delayed by plans to start building an identical data center right next door. Why should investors care? Once these buildings are open for business, the entire Apple business model will see a complete overhaul. And Netflix may be in the company’s sights,” Sterman writes. “For that matter, a raft of other technology firms could see a completely altered competitive landscape as well.”
Sterman writes, “It’s not just Netflix and Sirius that should be worried. An increasing number of consumers are tiring of expensive cable bills that deliver many channels they’ll never watch. A la carte access to specific channels could be part of Apple’s master plan as well. With 500,000 square feet of data center space about to come on line, Apple will have ample capacity to deliver such specialized video delivery services. When a second identical facility opens for business down the road, Apple can move even deeper into this niche. By then, cable firms such as Time Warner Cable may also have plenty to fear.”
Much more in the full article here.
[Thanks to MacDailyNews Reader “Carl H.” for the heads up.]
Apple’s final frontier: The living room – April 13, 2011
Apple updates Apple TV with live MLB, NBA streaming, Netflix, Dolby Digital 5.1, and more – March 9, 2011
Cringley: Apple will buy Time Warner Cable in 2011 – January 7, 2011