No, Apple doesn’t need to buy Netflix

“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.”

Eddy Cue
Eddy Cue
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?

SEE ALSO:
Apple’s Eddy Cue alienated cable providers and networks with an assertive negotiating style – report – July 28, 2016

Why Apple should buy Netflix or something – February 22, 2017
Apple’s arrogance said to contribute to struggles to make big deals – February 15, 2017
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
Apple declines to place bid on NFL Thursday Night Football – March 3, 2016
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

18 Comments

  1. Just get the damn licensing worked out so that we can have a subscription to all the TV and Movie options in iTunes. The video equivalent of Apple Music. I’ll gladly give the money to Apple that I’m currently sending to Hulu, Netflix, and my other streaming services.

  2. Eddy Cue is a putz. The sooner they put a top negotiator to replace Cue the more content Apple can get, including a skinny TV package. All Apple needs to to pick the right content then start building. There are thousands of shows out there waiting for production. With the right team and leader, tech guys need not apply Apple can start increasing their own content, without having to buy a Netflix type company. I’m really surprised Apple hasn’t partnered with some studios to release movies and shows like Disney. Oh wait Eddy is handling that. See how well it’s going. The biggest mistake Apple made is selling Paxar to Disney. They had a ready made content provider.

    1. I’m not downing the rest of your post but l’ll like to note : Apple did not own Pixar. It was Steve Jobs, he bought it from George Lucas with his own money and ran it at the same time approximately when he was running NEXT (after having been pushed out of Apple). He sold it to Disney and became Disney’s largest private shareholder.

      One of the reasons he sold it was that Disney was Pixar’s distributor and after the initial contract ran out Disney wanted more control and Jobs wanted to concentrate on Apple.

  3. Why can’t Apple negotiate with studios for their own content? Why go through Netflix? It just seems as though buying Netflix for the content would be a waste of money. I think Netflix is quite over-valued. Apple could do the same thing Amazon is doing and offer consumers a nice bundle of content for a reasonable price. I’m sure Apple would benefit even greater than Amazon if Apple provided packaged streaming services for Apple product users.

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