“Calls for Apple to buy Netflix are getting louder. Instead of evaluating whether Apple should buy Netflix, a more valuable question is whether or not Apple actually needs to buy Netflix to accomplish its goals,” Neil Cybart writes for Above Avalon. “Upon closer examination, it becomes clear that calls to buy Netflix are misplaced as Apple is chasing after something entirely different in the video streaming space.”
“In essence, Netflix is like Spotify. Apple could acquire Netflix and instantly become the leader in paid video streaming,” Cybart writes. “However, there is evidence that Apple is instead looking for something different. Apple is searching for another ‘Jimmy Iovine,’ new connections and relationships with Hollywood.”
MacDailyNews Take: Apple bought Beats for Jimmy Iovine because Steve Jobs is dead and Eddy Cue couldn’t do the deals and/or didn’t have the connections and/or didn’t have the knowledge required for music streaming. Now, as the current state of Apple TV so glaringly displays, because Steve Jobs is dead and Eddy Cue can’t do the deals and/or doesn’t have the connections and/or doesn’t have the knowledge required for video streaming, Apple needs to buy another “Jimmy Iovine.”
So, in a nutshell: You have a job to do. You can’t do your job, so the company pays billions to acquire talent that can. Yet, you not only keep your job, but the company inexplicably attempts to drown you in RSUs. What a great gig!
Eddy Cue’s photo is the illustration for the dictionary definition of “failing upward.”
“According to The Financial Times, Tim Cook and Eddy Cue discussed a range of possibilities with Imagine Entertainment, founded by Ron Howard and Grazer, including a possible acquisition. The takeaway from those talks doesn’t revolve around Apple getting its hands on an existing content portfolio,” Cybart writes. “Rather it focuses on bringing people on board to come up with new ideas.”
MacDailyNews Take: 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.
Read more in the full article here.
MacDailyNews Take: Exit question: How many photos, of whom and doing what, does Eddy Cue possess?
Apple’s Eddy Cue alienated cable providers and networks with an assertive negotiating style – report – July 28, 2016
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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
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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