Analyst: New Apple TV platform is bad news for Netflix

“Netflix has had a difficult week, in part on reports that Apple may introduce some of its own original content,” Teresa Rivas reports for Barron’s.

“Global Equities Research’s Trip Chowdhry thinks investors should be right to be worried about Netflix, which was still falling Thursday,” Rivas reports. “In a new note out today, Chowdhry writes that his research indicates that Apple has definitely acquired NoSQL database FoundationDB (most likely for less than $50 million) and this will be the engine behind the new upcoming TV platform.”

“Now, with FoundationDB, Chowdhry writes that the new Apple TV platform ‘provides strong indication’ that Apple TV will come with its own software development kit and its own app store, i.e. its own Apple TV ecosystem,” Rivas reports. “And there’s the problem for Netflix, he argues, since in this ecosystem Netflix would be just another app, or a ‘second-class citizen.'”

Read more in the full article here.

MacDailyNews Take: As we wrote back in March regarding Apple’s FoundationDB acquisition:

Could be useful for any Internet TV plans Apple might have. Think “iTunes’ Genius feature for TV” and beyond!

SEE ALSO:
Apple acquires FoundationDB to improve key apps and software services – March 25, 2015
Apple buys into big data? – March 25, 2015
Apple acquires FoundationDB, durable database company – March 24, 2015

10 Comments

  1. I’m not sure how the new Apple TV platform will hurt Netflix. It’s been “just” an app on my Apple TV for years, one I turn to almost every evening to look around for some old TV series or movie to watch. Its content listings are huge, if old. I regularly find some old TV series I never heard of to enjoy.

    I’m not likely to pay a discrete fee to try out some old show. With Netflix everything is included with the flat subscription price. It will be years, if ever, before Apple offers a comparable $9/month unlimited offering to fill this niche.

    I enjoy Netflix’s new exclusive content, but that’s not why I continue to subscribe.

    1. Netflix’s inability to provide timely access to new and quality films, and Netflix’s continued decline in customer service will give me the impetus to try anything else.

    2. Apple TV won’t be competing with Netflix. From all indications they will serve 2 completely different markets. Netflix is about having access to a HUGE inventory of older shows. I’ve been surprised at how many older shows my kids have really enjoyed. Just because the shows are older doesn’t mean they’re sub-par.

      We cut cable. With OTA available along with Netflix we got plenty of entertaining programing for less than $9 per month.

  2. The way Apple announcements have been lately I’m keeping my expectations low and hoping to be surprised. They’ll probably just unveil new iPhones that look identical to the current ones and the “One More Thing” will be a live performance by U2. Been hoping for a super cool Apple TV hardware upgrade for so long I’ve become way jaded.

    1. Yes they haven’t exactly managed Apple TV well have they, effectively compared to the opposition letting it rot on the vine for so long just so they can make a new iteration look so much better by comparison. There is only so much the user/potential user will take of that tactic, because as much as anything else it suggest both a lazy attitude to its customers and above all meaness from such a wealthy company. Not to mention the arrogance of thinking it can simply win over/back those customers who have shopped elsewhere in the mean time. That won’t always be the case.

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