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Eddy Cue's failure in Hollywood is just epic.
He has a subscription in 27 hotels in LA, almost lived there for 8 years, has a network of about 10k people.
Yet no content deal.
I mean, can it be any worse ?
 
I'd like to see Apple go all in and just buy Netflix.

Netflix's Market Cap is around 60b. Even if they "Are Not for Sale" Apple has the War Chest needed for a hostile take over. Since Apple's track record with content isn't as good as Netflix's they could let them run independently. Netflix would be good for another .50-.75 EPS when synergies are realized. With potential tax holidays on the horizon, I can't think of a reason not to buy netflix.

Apple would ruin Netflix. At one time I was all for that but not under Tim and Eddy. Netflix is more agile and innovative on its own.
 
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Here's how the talks probably went:
APL: Ron, put on your big boy pants and give use you company for 1/10th of what it's worth.
Ron: So this is why you you have such a bad rep with working with other companies.
 
Apple needs to stay focused and create great devices and OS', not create content that has a high failure rate, let the rest of the world do that and if they succeed then put it in their store, and if they fail, nothing lost.
According to fusion.net 1/3 of all movies fail. Imagine if 33% of all Apple devices failed, no one would buy from them again. Stay focused Apple, Please!
 
Sad to see Mansfield, Srouji, Howarth, Ive, Riccio are focused on TV content than manufacturing the next-gen Macs. At this point I don't think we'll be seeing a new file system or programming language or even basic advancements in man-machine interfaces such as pressure-sensing displays and trackpads or dynamic function row keys. This new Apple doesn't care about development. It's watch bands and reality shows from here on out.

Or perhaps reality shows about watch bands.
 
I'd like to see Apple go all in and just buy Netflix.

Netflix's Market Cap is around 60b. Even if they "Are Not for Sale" Apple has the War Chest needed for a hostile take over. Since Apple's track record with content isn't as good as Netflix's they could let them run independently. Netflix would be good for another .50-.75 EPS when synergies are realized. With potential tax holidays on the horizon, I can't think of a reason not to buy netflix.

What is their profit margin? https://ycharts.com/companies/NFLX/profit_margin

Apple likes nice fat margins. https://ycharts.com/companies/AAPL/profit_margin

Would they get that if they bought Netflix (or similar) and basically let it be? No. So how would Apple change Netflix to achieve their target margins? And, if they did that, would you still like Netflix?
 
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What is their profit margin? https://ycharts.com/companies/NFLX/profit_margin

Apple likes nice fat margins. https://ycharts.com/companies/AAPL/profit_margin

Would they get that if they bought Netflix (or similar) and basically let it be? No. So how would Apple change Netflix to achieve their target margins? And, if they did that, would you still like Netflix?

My thoughts are Netflixs' biggest expenses are centered around IT infrastructure and content distribution. Apple and Netflix should be able to synergize here to cut costs for both OpCos. These cost savings should create solid margin expansion for Netfix.

Additional, Netflix is still in a growth phase when margins are compressed in exchange for market share. They have solidified their position as the market leader so I would expect to see profit margin increase in the next 1.5-3 years.

Thoughts?
 
I wouldn't wanna sell to a company that's producing this garbage:


I could just see the team of low level sycophants sitting in the Apple meeting with Cue and Cook and nodding vigorously and telling them how GREAT this show looks and what a killer it's going to be - all the while knowing it's a piece of crap. Of course this isn't a failing of just Apple, it seems to be rampant in both television and movies - otherwise how do all of these "3 episodes and canceled" TV shows see the light of day.....along with some of these movies that are real (non) Oscar contenders (e.g. "Fist Fight"). The people making and starring in these things have to know they're pieces of **** while they're doing it. If you ask them they'll say "hey - it's a paycheck". Meanwhile the production companies lose millions. As a shareholder I'll hate to see Apple pouring money down the sewer making crap like this.
 
Deleted. Borders on political and veers away from the topic of the article.
 
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I must admit what the heck are apple thinking producing a show like this. So so so bad. This is potentially damaging to their brand. Worries me...

Hate to break it to you but this is fast becoming their brand. The writing on the wall has been pretty clear for a while now.

Disclaimer: Before lambasting this forum post as another 'Apple is doomed' statement please note that nowhere in this post is any indication made as to whether the actions by Apple prompting this forum post or subsequent forum posts responding to this original forum post will result in Apple increasing or decreasing their revenue or profit or succeeding or failing as a company.
 
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I'd like to see Apple go all in and just buy Netflix.

Netflix's Market Cap is around 60b. Even if they "Are Not for Sale" Apple has the War Chest needed for a hostile take over. Since Apple's track record with content isn't as good as Netflix's they could let them run independently. Netflix would be good for another .50-.75 EPS when synergies are realized. With potential tax holidays on the horizon, I can't think of a reason not to buy netflix.


Lot's of good reason not to. Netflix has a very precarious model. Their only revenue model is subscribers, but as they face ever growing prices for their "original" content as they bid against Amazon, Hulu, and others, and soon, maybe Apple, they are growing closer to a point where they might not be able to raise prices enough to pay for their ever more expensive content. While they have bought rights to some impressive "original" content, they are also still dependent on other entities for the majority of their catalog to let them redistribute non-original content. Apple, Amazon, Google and a growing number of others can use the their content as a loss leader. It's somewhat analogous to Spotify, although Spotify also has ad revenue, but both are competing amongst giants who have other revenue sources.

Yes, Apple is looking for content to incentivize people to sign up for Apple Music, but paying $60 billion dollars for Netflix is far from a no brainer.

BTW, you made the claim that Apple's record with content isn't as good as Netflix''s. But Apple has brought in exponentially more money from content, e.g., Apple Music and iiTunes, than Netflix likely ever will.
 
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And they went and plunked down $2B to buy Beats. I thought that was pound foolish too. I still don't understand what they saw in Beats. Certainly can't be the the crappy sounding headphones. Would establishing Apple Music from scratch cost more than $2B? They must have thought so.:confused:

Maybe that Beats purchased scarred their psyche.
 
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I'd like to see Apple go all in and just buy Netflix.

Netflix's Market Cap is around 60b. Even if they "Are Not for Sale" Apple has the War Chest needed for a hostile take over. Since Apple's track record with content isn't as good as Netflix's they could let them run independently. Netflix would be good for another .50-.75 EPS when synergies are realized. With potential tax holidays on the horizon, I can't think of a reason not to buy netflix.

It doesn't make any sense for Apple to buy something like Netflix. Apple doesn't need distribution platform it needs content. Apple should have bought Warner Bros.
 
I wouldn't wanna sell to a company that's producing this garbage:

Garbage?...... Why be so kind and nice?

Cant do it right Apple ..dont do it at all....and save yourself and us the embarrassment...

Games of Thrones vs totally cheesy and unoriginal karaoke or Gwyneth telling me whats a good app strategy... give md ***** break !
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Eddy Cue's failure in Hollywood is just epic.
He has a subscription in 27 hotels in LA, almost lived there for 8 years, has a network of about 10k people.
Yet no content deal.
I mean, can it be any worse ?

Everything Eddy is a convoluted incohetent mess at Apple..

He is the weakest link in the chain... and it seens that's just fine for Apple...
wake up Tim
 
Hate to break it to you but this is fast becoming their brand. The writing on the wall has been pretty clear for a while now.

Disclaimer: Before lambasting this forum post as another 'Apple is doomed' statement please note that nowhere in this post is any indication made as to whether the actions by Apple prompting this forum post or subsequent forum posts responding to this original forum post will result in Apple increasing or decreasing their revenue or profit or succeeding or failing as a company.
Hmm in my opinion not to this extent. But it worries me that they could have made such an ill informed creative decision on buying this format. I'm baffled by such a move. Wish I could chat to Tim.
 
Lot's of good reason not to. Netflix has a very precarious model. Their only revenue model is subscribers, but as they face ever growing prices for their "original" content as they bid against Amazon, Hulu, and others, and soon, maybe Apple, they are growing closer to a point where they might not be able to raise prices enough to pay for their ever more expensive content. While they have bought rights to some impressive "original" content, they are also still dependent on other entities for the majority of their catalog to let them redistribute non-original content. Apple, Amazon, Google and a growing number of others can use the their content as a loss leader. It's somewhat analogous to Spotify, although Spotify also has ad revenue, but both are competing amongst giants who have other revenue sources.

Yes, Apple is looking for content to incentivize people to sign up for Apple Music, but paying $60 billion dollars for Netflix is far from a no brainer.

BTW, you made the claim that Apple's record with content isn't as good as Netflix''s. But Apple has brought in exponentially more money from content, e.g., Apple Music and iiTunes, than Netflix likely ever will.
Awesome reply and some really good points made here! Thanks for this - it was very refreshing.
 
My thoughts are Netflixs' biggest expenses are centered around IT infrastructure and content distribution. Apple and Netflix should be able to synergize here to cut costs for both OpCos. These cost savings should create solid margin expansion for Netfix.

Additional, Netflix is still in a growth phase when margins are compressed in exchange for market share. They have solidified their position as the market leader so I would expect to see profit margin increase in the next 1.5-3 years.

Thoughts?

Netflix plans on spending $6 billion on content in 2017 alone, but I'm not sure how much that stacks up to their distribution costs (couldn't find any numbers on what they have to pay Comcast, Verizon, etc., in interconnection fees). They are pushing hard in foreign countries though and their US subscriber growth is slowing down. Since they are a subscription company the only real thing they can do to boost revenue once growth slows is to raise prices. That's never gone well for them in the past, and the field is more crowded now than ever.

Original content is the key to survival and that's why they are aiming for 1,000 hours of it in 2017 (almost double what they did in 2016).
 
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Most recently in the case of Ebay vs Newmark it was ruled that companies are legally required to maximize profits by any legal mean.

This is why the market averages 7-9% YOY. It's not always pretty but it keeps the economy turning.
No, in reality it's debt issuance that keeps economies turning worldwide. Take away those low interest rates and watch stock market indices revert to sane values ~50% lower.
 
Eddy Cue's failure in Hollywood is just epic.
He has a subscription in 27 hotels in LA, almost lived there for 8 years, has a network of about 10k people.
Yet no content deal.
I mean, can it be any worse ?

Wasn't that why they bought Beats, having access to Jimmy Iovine because he was super-connected?

All he's done until now is call women hysterical and old people idiots.

But yeah, Cue is a buffoon.
 
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