Analyst Speculates Apple Prepping Video Subscription Service to Challenge Netflix

[APPLENEWBIE]

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Heres the problem with more and
More streaming cloudy stuff ... The bandwidth bottleneck. Surely apple sees that there is a crisis coming because, for whatever reasons consumers, especially wireless consumers, are finding it harder and more expensive to get fast reliable cost effective service. Could apple have plans to somehow address that issue with their data center? They seem like a company that looks
Forward to address problems before the erupt in crisis

 

[manu chao]

All companies are for sale. Its called a hostile takeover. Just offer a premium over their share price.

All publicly traded companies without a committed majority shareholder are for sale.

A hostile takeover requires that the ownership and the management of a company have different opinions.

 

[paul4339]

This could work if:

1. sets subscription pricing model equal to or better than Netflix

It's hard for me to see this happen, especially from Apple.
IMO, Apple charges premium and often doesn't even initially have lots of features or functions ... usually something just very basic. However, they usually have one or two compelling features that they do well ... usually it's something that deals with convenience and ease of use or simplicity - and only available with their product or service offering (ecosystem).

 

[msimpson]

Silly speculation by analysts with no clue...

One new giant data center building does not make a video streaming service or even a "cloud". Netflix relies on a distributed content delivery system like Akamai. When you watch a movie on Netflix the stream may come to you from a number of source points - and not always the closest one physically. Netflix tries to figure out which delivery point will stream you the content the fastest with the least interruptions. Sometimes when you are watching a streamed movie it will "adjust" the transmission when it sees the delivery slowing down. It may reconnect you to a server that is responding faster, and has less latency. Right now with the iPad2 out, the financial analysts and the web rumor mongers are struggling because they don't have any current solid info on what Steve has up his sleeve next. Until Steve announces "one more thing" I am not holding my breath. Whatever they do, I sure hope I never hear Steve use the overworked, over-hyped, meaningless word "cloud" when referring to an Apple product. The "cloud" was around long before some marketing yahoo decided to call it that.

 

[Primejimbo]

and look at the crappy content that they have for streaming. everything is super old. hopefully if apple does this, they would have new content and people wouldn't mind paying more bc the content is better.

Since when is "The other Guys" and "Alice in Wonderland" (2010) old? and for people who said it takes a long time to add to the DVD's and change stuff, it takes 5 minutes after we watch a DVD.

 

[APPLENEWBIE]

The telecon’s have interests that are at direct odds with Apple’s vital interests:

Telecon: Most revenue for the smallest possible investment and providing the minimum service to keep customers at the highest prices. Also, monopolies are GOOD.

Apple (and Google, Microsoft, Amazon, et al): Sell products and services at the highest margins possible while expanding customer base, depending largely upon the customer’s abilities to access ever expanding flows of data. Monopolies are BAD because they do not foster increased network data capacity.

So, what could apple do to resolve that situation? How about by buying Sprint, soon to be a marginal player, but with good, but limited, infrastructure, but limited financial resources? Huge investments in capacity and marketing to provide much higher rates of data at drastically lower costs, thereby reducing the monopolies run by ATT-Tmobile and Verizon.

Just thinkin’

 

[Meandmunch]

Only question. Why?

Some say Apple need to buy Netflix. Have those of you even considered what Netflix charges for monthly streaming?

$8

Apple will never let customers eat that much for so little. The day Apple buys Netflix, DVDs would stop, and streaming would go up to $30 a month.

Promised.

Apple could if they had the massive volume and pricing Netflix has negotiated to get it that low. Netflix in my opinion is already a monopoly, pretty much the only reasonably priced and silly easy to access source (through all five of my devices) for streaming video.

 

[ten-oak-druid]

AppleTV has a great user interface. It is simple and easy to navigate.

Some of these software designers need the equivalent of an editor to reign them in. There are some really bad user interfaces on some of these devices. I think the bad designers need a perspective of someone not as familiar with the system as they are.

 

[charlituna]

Apple advantages:
- could be launched in a lot of countries (probably everywhere there currently is an iTunes Store)

Still has the same issue as Netflix, the studios have to approve it. Just like with sales from store to store where not all things are available in all stores

 

[satkin2]

If Apple plan to go down this route they really need to improve their internationally available films and tv shows. I bought an Apple TV, but some of the biggest more recent movies weren't available and TV show rental is non existent. In the UK it's essentially a streaming service for you personal media library, other than that it didn't offer anything, so I sold it.

 

[ipoppy]

Only question. Why?

Some say Apple need to buy Netflix. Have those of you even considered what Netflix charges for monthly streaming?

$8

Apple will never let customers eat that much for so little. The day Apple buys Netflix, DVDs would stop, and streaming would go up to $30 a month.

Promised.

No point to buy it if company is restricted only to North America. Waste of money if on long run Apple will eat that anyway.

 

[PeterQVenkman]

If Apple entered this market it would be on terms the movie studios like more than Netflix. And that would mean more expensive streaming.

I already see what the movie studios have done to netflix as a whole. They are pulling more and more content from their service. Streaming is pretty slim pickings compared to what it was.

The movie studios want to turn netflix into the realm of misfit movies nobody would watch anyway:

http://news.cnet.com/8301-31001_3-20039915-261.html


Shame. Love me some netflix (both disc and streaming)

 

[Eye4Desyn]

...Whatever they do, I sure hope I never hear Steve use the overworked, over-hyped, meaningless word "cloud" when referring to an Apple product. The "cloud" was around long before some marketing yahoo decided to call it that.

I hear ya, but look at the MM logo/graphic. I think it's been done without actually having said it.

 

[davidmartindale]

Cool

I think that would be cool, although I already have Netflix(its my moms) I might get this because I am a huge apple fan and so I would have something like that when I move out or if my decided to quit using Netflix(doubtful) however that depends on a few thing price, quality and quantity. But maybe apple will have more new stuff available to instant stream. Anyway I think its a good idea and hope this is what apple actually plans to do.

late 2009 mac miniiPhone 4 16gbiPod classic 160gbapple tv

 

[Bevz]

Bearing in mind netflix isn't available in the UK, I'd sign up to an apple alternative. May even get an ATV2 if this goes live...

 

[drummingcraig]

Netflix advantages:
Netflix disadvantages:
- only available in USA and Canada (extremely limited selection in Canada)

Apple advantages:
- could be launched in a lot of countries (probably everywhere there currently is an iTunes Store)
- already have a lot of iTunes Store user accounts worldwide

While it would be nice for folks overseas to have access to this service, it is unlikely to affect US users due to copyright issues (ie if I as a US user travel to Europe I probably wouldn't be able to access my Apple movie account there and stream content).

Apple disadvantages:
- would probably require an Apple-made device to access the content (bonus: no Silverlight installation required on Mac), as I don't see Apple making an app for the Xbox360, PS3, Wii and other set-top boxes (they'd rather sell you an TV)
- their servers are located in the USA, so I don't know if it's enough to serve streaming media worldwide. Do they currently have servers in other countries for the international iTunes Stores?

Technical issues aside, however, it all boils down to selection and price.

Unless they keep their pricing structure very similar to Netflix they will have a tough time with it. Especially if the service requires their hardware. Plus Netflix has such a great reach into the market with their app, and as you noted I don't see Apple designing an app to work with other hardware (and siphon sales from the TV).

 

[Bubba Satori]

Only question. Why?

Some say Apple need to buy Netflix. Have those of you even considered what Netflix charges for monthly streaming?

$8

Apple will never let customers eat that much for so little. The day Apple buys Netflix, DVDs would stop, and streaming would go up to $30 a month.

Promised.

Bingo. One trillion in the bank. Magic.

 

[roocka]

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Why do people think apple should buy Netflix? This would be the dumbest acquisition EVER. Apple can build a competing service with better instant selection for a little more money.

Netflix sucks. I'm this close to cancelling my service.

Apple will preload a media app on every I-device and advertise on television. Netflix will Lose half it's value overnight. Also, apple will possibly allow you to demo games on your tv..

 

[drummingcraig]

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Why do people think apple should buy Netflix? This would be the dumbest acquisition EVER. Apple can build a competing service with better instant selection for a little more money.

Netflix sucks. I'm this close to cancelling my service.

Apple will preload a media app on every I-device and advertise on television. Netflix will Lose half it's value overnight. Also, apple will possibly allow you to demo games on your tv..

Building a better instant selection isn't solely up to Apple. Apple would need to negotiate rights & prices from the studios for streaming content. A big reason why Netflix's instant movie library is a little gimpy surely has to do with keeping the subscription rates competitive. Apple is not just going to be able to immediately offer the "coolest & best" new content in a streaming format without charging a premium for it (as demanded by the studios).

 

[rmwebs]

If they run this out of the new datacenter, expect it to be a pile of crap. You need multiple datacenters all over the globe else everyone will suffer poor speeds...much like Apples largest audience (the international market) do with the current crappy iDisk.

 

[Don Kosak]

I am loving the added competition in the video streaming space.

Makes people like Comcast and TimeWarner squirm. The Post-TV days are here, just like the Post-CD, Post-Newspaper and Post-Magazine before. All we needed was mature encoding, and enough bandwidth.

Apple needs to do this to continue growing as a media distribution king; they're tiny in all areas except music right now.

The consumer will win, not from Apple's "rock bottom" pro-sumer pricing , but because the competition will drive costs down and bring more content into the mix.

 

[Ugg]

Makes sense. That's probably one of the biggest uses of the ATV and Apple doesn't get a cut of that action.

That being said, Netflix inclusion is the only reason I bought the ATV2. If they cut Netflix, I'll by another product.

I've only rented about three movies from Apple in the 6 months I've had my ATV2. Netflix is mostly great, but if Apple is able to offer the same selection, I'm big on foreign flics, then I'd drop Netflix in a second.

 

[afireintonto]

i love my apple tv 2, i would be very interested to see apple's subscription service, if they kill netflix ability on the atv2 i'll be pissed. i don't like the idea of apple buying money on netflix because i want competition, and i'm sure apple wouldn't allow third party devices, ie-bluray players, game consoles, etc, to get in on the action. they don't allow itunes renting on third party devices now.

 

[thelonelylimo]

I'm looking forward to this.. I love my Apple TV, but the $4.99+ 24 Hour rentals are a little absurd. I hope a 1080p refresh is released this year, possibly.

 

[warschauer]

First, Netflix doesn't work any more on my Macbook pro. It keep crashing and asking me to delete and reinstall Silverlight. When it did that multiple times in one movie, I just stopped using it.

Second, Netflix doesn't work any more on my iPad. The app just stopped working.

Third, when Netflix did work on my iPad, the picture quality was terrible.

So yes, I'm all in favor of Apple launching a competing service. A low cost is hardly a bargain if it doesn't work on any of my devices.