“Apple’s announcement of series of original new content projects for its upcoming Apple TV+ subscription service raises two questions: why would Apple want to be in that business, and why didn’t it just acquire Netflix, the established leader in that space?” Daniel Eran Dilger writes for AppleInsider. “”
“In many ways, Apple TV+ is a lot like the video version of Apple Music. Apple launched its streaming Music service in response to consumers’ shift away from iTunes music downloads, lead by the popularity of Spotify,” Dilger writes. “The new Apple TV+ is a similar move to follow the shift in demand from movie downloads or rentals to the all-you-can-eat video streaming plan popularized by Netflix.”
“It appears Apple launched Apple Music and its upcoming TV+ subscriptions to stay relevant in content. It similarly originally entered the music downloads business with iTunes, not to make vast profits, but to ensure that recorded music would remain available to users of Macs and iPods in a format Apple could control,” Dilger writes. “If streaming shifted mainstream media consumption to Spotify and Netflix, Apple would eventually face commodity issues where everyone can watch Netflix and listen to Spotify from any device. Further, Spotify and Netflix might even begin prioritizing playback on non-Apple devices… But why is Apple starting from scratch rather than simply using its huge pile of cash to snap up Netflix? The next article will examine that.”
Read more in the full article here.
MacDailyNews Take: It’s far less expensive to develop your own hits – Apple only really needs one hit to start – than to overpay for Netflix.
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. — MacDailyNews, May 27, 2016
SEE ALSO:
Apple’s biggest mistake under Tim Cook so far? Not buying Netflix – February 15, 2019
J.P. Morgan: Apple should buy Netflix, but it would likely cost at least $189 billion – February 4, 2019
Citi analysts: 40% chance Apple will acquire Netflix now that President Trump’s corporate tax cut has been passed – January 2, 2018
Citi: Apple 40% likely to acquire Netflix, 5% likely to acquire Tesla – May 5, 2017
Analyst: Apple could double dividend, buy Netflix with repatriated cash under President Trump’s U.S. corporate tax changes – March 17, 2017
No, Apple doesn’t need to buy Netflix – February 22, 2017
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
Because Netflix is 150 billion of nothing, and these lack of focus low margin content will end when Tim Cook is gone.
Netflix and Amazon are chock full of schlock. Apple can just pick the low hanging highbrow fruit.
Apple has an atrocious history of creating original content. I fully expect that to continue, as Tim Cooks Apple has shown once again that they are out-of-touch when it comes to creating compelling original art. Stick to hardware and software, and stay out of the content business Tim.
To me, Disney would be a much more natural fit. Don’t understand why it didn’t happen years ago. Still a good idea, I think… but the price has definitely gone up.
Steve Jobs owned Pixar before Disney bought them, if that didn’t happen when Jobs was CEO of Apple, Disney will NEVER HAPPEN for Apple….?
Microsoft paid..what..85 BILLION for Skype? And your commentary suggests Apple shouldn’t “overpay” for Netflix? Netflix is at the heart of streaming. They were the first to deliver a smooth experience. It would take a lot of $$, luck, and effort for Apple to even approach the quality that Netflix has provided with its original content. As a stand-alone (leaving out network TV series), they have produced more quality original content than anyone, in my opinion. Prime is OK, but the interface sucks and “free” content a joke…with a few season 1-only TV shows, a handful of good original series, and movies on par with VEVO.
Netflix makes no profit when compared to Apple, 200 million per quarter is a waste of Apple’s time the Apple watch more profitable, and the total buyout price for Netflix is 200 billion dollars.