Analyst: Apple could disrupt Netflix

Rich Tullo, director of research at Albert Fried & Co., “sees a big threat to Netflix from Apple,” Tom Bemis reports for MarketWatch.

We think Apple may enter the next generation TV market with a large Panel Retina Display Supported by iCloud. If Apple roles out a next generation TV it is likely Apple will support the product with the iCloud its natural match in our view. We think Apple could disrupt NFLX and get industry buying and make the current exclusive rights streaming rights controlled by NFLX useless. – Rich Tullo, director of research at Albert Fried & Co.

Bemis reports, “Tullo put a sell on Netflix with a $68 price target.”

Read more in the full article here.

20 Comments

    1. Forget Netflix. They aren’t worth the money at $8 per month. Poor selection, terrible interface.

      Apple needs to buy Disney. That gets them ABC and EPN, plus all those Disney, Touchstone, and Buena Vista movies and cartoons. Then yank ESPN off the cable and satellite companies, or just offer an ESPN subscription for $15 per month. ESPN is what keeps most cable customers paying $100 a month for ESPN bundled with all that other crap. Then watch cable and satellite hemorrhaging customers within days.

      1. 1000!
        Then they should buy HBO and/or Showtime for their premium content/productions and begin offering the new paradigm to all iTunes subscribers on a monthly subscription basis, and/or the option to purchase content if desired. Then watch cable TV begin to die or be seriously willing to negotiate with Apple for content.

          1. Time Wanker Cable and Netflix are currently fighting over Net Neutrality issues related to streaming. Other cable comapnies have capitulated to Netflix on this, the analysts seem to think TW will too.

          2. Great Point, but not all ISPs are cable companies.

            Definitely valid, noting cable companies do still have a strong hold and control on content and delivery, however, AT&T could be considered a ISP… same as any other cellular network these days.

            terago, distributel, teksavvy, telnetcommunications, pathcom, acanac,

            Bell and Rogers both are cable providers who KNOW well they hold a key to the future of streaming.

            Did Steve figure all this out really?
            Is iCloud going to handle that demand?
            Apple is going to need to have a superior plan on this one.
            If not buy out Netflix.

            Movies and Tv just aren’t ready for RETINA quality.
            The new MP5 or 6 or 15 whatever it was – standard might hold a key to the compression and streaming demands… yet YOU are very right… APPLE needs to by pass all cable and cellular ISP companies or partner with them before content is the issue.

    2. Most of Netflix’s selection is still exclusive to DVD. That is the doing of the content owners, not Netflix. Until those content owners make that content available to the streaming providers, be they Apple, Netflix, or another, the DVD option on Netflix is their competitive advantage.

      1. The lowest price is the law, IS losing huge to Netflix.

        NETFLIX is killing Walmart.

        Those bins of discounted DVDs are found on NetFlix… I can watch five or six a WEEK and not require room in my house to store something I may never watch again. its a great value.
        Its working – and Netflix continues to buy up streaming rights from Disney and Warner.

  1. Apple can do anything but it is pointless to assume where they are going. I mean, Netflix will still be around no? Hasn’t Samsung has disrupted Apple no? Where is that article? There was a stat saying apple outsells Samsung Galaxy 1.77/1. Thats less than two. Apple was outselling Samsung 5+fold a couple of years ago so i smell a disruption. Why hasn’t Apple tv disrupted Netflix already. This article is alittle late as apple is with this service and the larger screened Iphone.

    1. Apple TV has a Netflix app. If anything it’s supporting it. And Samsung’s disruption was unlawful. They stole apple’s designs and remade them with cheap parts, not only ripping off potential iPhone/iPad customers, but also placing a “junk” perception on these type of devices.

  2. Apple currently rents shows and movies at a price where you’d only get maybe 4 shows or 2 movies for a single month’s Netflix subscription. For all practical purposes those are streamed just like Netflix–on the AppleTV neither are stored anywhere except a temporary buffer.

    Why exactly would they give you nearly unlimited access to their entire TV/movie catalogue (i.e. paying for waaaay more bandwidth) for $8 a month? Netflix’ business model isn’t very profitable, first 3 quarters of 2012 they only made $9.5 million after expenses.

          1. I don’t think a physical TV from Apple is ridiculous, just the hysteria and emotional roller coaster most people seem to be on over the idea of an Apple branded TV.

  3. Netflix is the only streaming service that gives me adequate picture resolution over my crappy DSL service (it’s all I can get). If apple went to streaming you’ll probably need super-giga-fiber or something and only 20% of the USA will function. Unlike other apple products, I won’t be able to save up $$ to join the fun. Apple has to have a solution for the pipe before a streaming apple TV makes any sense. (At least for me).

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