AT&T just bought Time Warner. Comcast will buy Fox it is predicted. Apple should buy Netflix?
Was that a legitimate question?
Not in my opinion. The valuation of Netflix is crazy. A pure service like NFLX needs to be on as many platforms as possible. It would be "value destruction".
My view of Apple's video ambitions is that they want to have some differentiated content to increase the value of their ecosystem. Yet another reason to buy an Apple device, increases the usefulness of those Apple devices, and as a side benefit earn services revenue.
Apple's own content also gives Apple a "seat at the table" which can aid in negotiations with other content providers - whether getting them to offer subscriptions through App Store, enable content searching & place in TV App, licensing other content for inclusion in an Apple service, etc. Apple has seen that "just a big cheque book" isn't enough.
Comments
Not in my opinion. The valuation of Netflix is crazy. A pure service like NFLX needs to be on as many platforms as possible. It would be "value destruction".
My view of Apple's video ambitions is that they want to have some differentiated content to increase the value of their ecosystem. Yet another reason to buy an Apple device, increases the usefulness of those Apple devices, and as a side benefit earn services revenue.
Apple's own content also gives Apple a "seat at the table" which can aid in negotiations with other content providers - whether getting them to offer subscriptions through App Store, enable content searching & place in TV App, licensing other content for inclusion in an Apple service, etc. Apple has seen that "just a big cheque book" isn't enough.