“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:
2. Fox News Channel
5. Discovery Channel
6. History Channel
11. Adult Swim
13. Cartoon Network
14. Food Channel
16. ABC Family
20. Investigation Discovery
Source: Nielsen estimates, Live plus-3 for Dec. 29, 2014 – Dec. 16, 2015 (M-Su 8-11 p.m.)
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