Why Apple should buy Netflix

They should buy Disney (completely) while they are at it as well.
 
Interesting take on things, but yeah its merely one guys opinion, and I think he misses a few salient points in the whole thing.

On the surface it may be beneficial to Apple but what about Netflix.. it would all but kill them off and given the risks they're taking at the moment they're either going to make stupid money (more likely) or crash and burn (somewhat unlikely) so investors would be daft to get out now.
 
I don't think Apple would be interested. Firstly, the reason why Netflix is a dominating force is because it runs on everything. That is the polar opposite of the way Apple does things, which is an exclusive, vertically integrated experience.

If there was a company that would benefit immensely from Netflix it would be Microsoft.
 
konfab said:
I don't think Apple would be interested. Firstly, the reason why Netflix is a dominating force is because it runs on everything. That is the polar opposite of the way Apple does things, which is an exclusive, vertically integrated experience.

If there was a company that would benefit immensely from Netflix it would be Microsoft.
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Microsoft will stuff it up!!
 
ToxicBunny said:
Why?
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Your streams will show BSOD's instead of buffering, they will force you to update your Netflix app on every Patch Tuesday and it will mine bitcoins while you are watching your favourite shows :crylaugh:
 
konfab said:
I don't think Apple would be interested. Firstly, the reason why Netflix is a dominating force is because it runs on everything. That is the polar opposite of the way Apple does things, which is an exclusive, vertically integrated experience.

If there was a company that would benefit immensely from Netflix it would be Microsoft.
Click to expand...

Yes exactly I don't see Netflix fitting into their corporate model, if Apple takes over Netflix it will lose over 60% of it's customer base globally because Apple will make it exclusive to iOS, in terms technology Netflix runs on Amazon Web Services and lack any IP in that regards, the only reason Apple would buy Netflix would be for their Entertainment IP and that's not worth $100 Billion for that money they better off creating their own exclusive shows.

As for Microsoft, Netflix fits nicely within their business model a $20 subscription for Xbox/Windows which includes Xbox Live, Game Pass, Music Streaming and Netflix
 
wabbit16 said:
Your streams will show BSOD's instead of buffering, they will force you to update your Netflix app on every Patch Tuesday and it will mine bitcoins while you are watching your favourite shows :crylaugh:
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Hahha cryptomining :crylaugh: It's even in their terms of use! Apparently. But nobody could like us to that clause :crylaugh:
 
ToxicBunny said:
Interesting take on things, but yeah its merely one guys opinion, and I think he misses a few salient points in the whole thing.

On the surface it may be beneficial to Apple but what about Netflix.. it would all but kill them off and given the risks they're taking at the moment they're either going to make stupid money (more likely) or crash and burn (somewhat unlikely) so investors would be daft to get out now.
Click to expand...

It was an interesting article. As the article itself points out (and as you basically say), the market is expecting them to grow massively in the future - refer the share price which is 200 times earnings. This means investors expect huge growth.

Don't think they would be happy with new management taking over Netflix.
 
Hmmmm.

> Apple would be wildly overpaying for Netflix.

Which is why they won't do it. They're rich, but they're not easy with their money when it comes to acquisitions. It doesn't make financial sense either.

> Netflix is spending billions per year to acquire or create new content, money that it may not have in the future.

Why would it not have that money?

> Wall Street also historically misunderstands what Apple does

Irony.

> it has ceded a giant lead in voice to Amazon

Alexa allows skills, which would make Siri a lot more useful if Apple were to open it up. This is moot though, because Apple will piggy-back on Amazon's work as Microsoft has done, because it doesn't hurt them in the slightest.

> Apple TV has fallen behind video-streaming services Google Chromecast and Amazon Fire Stick

If I'm not mistaken, purchases on competing platforms have/had different prices depending on if you're buying a film in HD or 4K, and Apple was cheaper than both following their 2017 Event. Google is only recently following Apple's lead in offering 4K HDR content for no extra charge. As did Amazon.

Prime Video's offerings aren't that great either.

> Apple TV charges a premium over its competitors

See above.

> Apple TV has fallen well behind Roku and Fire Stick for innovation

Innovation?

> Take these new TVs out of the box, sign in with your user name and password, and voila! You’re watching your favorite shows. These streaming TV dongles will eventually go away, leaving the big dogs to compete on content.

Forgetting that over 50% of Smart TVs and streaming devices will not receive updates beyond their shelf life, which is about 1-2 years. But go on, please promote devices which have comparatively weaker security as time goes on.

> Apple TV sales could be juiced by including free Netflix memberships for six to 12 months with each new purchase.

That would be trying to boost Apple TV sales at the expense of Netflix's subscriber revenue. Apple isn't in the habit of cross-subsidising anything within their stable. Apple TV does just fine on its own.

> At $100 billion, Netflix would not be a small or inexpensive purchase. Apple has purchased lots of small firms for their expertise and engineers, but it has no experience making big purchases.

That's because Apple doesn't go around buying things willy-nilly. Why would they spend $100 billion on a company that pulls only a tenth of that in revenue?

> Making a large acquisition like Netflix is potentially a huge distraction to Apple’s core business — namely, making insanely great hardware and software.

Makes sense.
 
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