Why did Apple create Apple TV+ instead of buying Netflix?

“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

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

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