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Apple Eyes Original Content, But Looks to Avoid Expensive Bidding Wars With Netflix and Amazon
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I don't understand why Apple would bother. Original content has nothing to do with what Apple does, where would it even fit in their eco-system? And anything they do produce would probably require you to have their crappy Music subscription.
Wrong. Apple knows that hardware, over time, becomes cheaper and cheaper.
Always. (I'm talking 20 or 30 years. Not next quarter or next year.)
They will need to supplement their hardware revenue with services and content at first.
Then they will need to ramp up services and content revenue as their main income.
Because, inevitably, that hardware revenue will begin to decline.
(Unless, of course, Apple branches out in earnest into cars, home automation, and other hardware
that is as profitable as mobile computing hardware is at the moment.)
And we, as mobile technology users, are rapidly moving toward a future like that in the movie "Her."
Just an earpiece and generic pocket screen plus massive server power and ultra-fast wireless.
People will be walking around with just those, at most. Hard to generate iPhone-level revenue with that.
And I think we'll get there far sooner than 20 or 30 years from now. Maybe just 10.
So to say "just build computers and mobile devices" to Apple, right now, is to tell them to die.
It's like saying "just keep building hardware-keyboard Blackberries" to RIM.
Remember them?
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Why does Apple need to be in the business of producing original content? Would they even be any good at it?
Just one more example of why Tim Cook could be a fabulous COO but has zero vision as a CEO to make Apple the company it once was. He just has no clue regarding the reputation Apple used to enjoy as the company that made great, exciting and innovative things that did everything just as you intuitively thought they would.
I used to be an Apple fanatic. Now, Apple to me is no more than "meh".
I used to be an Apple fanatic. Now, Apple to me is no more than "meh".
Steve Jobs may have cracked the TV. Even if he did that was a long time ago. The industry is moving on and Apple doesn't seem to want to keep pace. A substantial portion of my viewing is on my Mac and Apple's new tv app isn't supported on OSX (yet?). From the looks of their approach I don't see my money going their way.
Moot. Apple has already shown that RIM's flaw wasn't in hardware but in the ecosystem and adapting to change.
What you're suggesting is that there won't be a need for hardware, and that's absurd.
Unless Apple has found a new way to produce content in a way that outsells or matches revenue for the iPhone then it's not a good move. Netflix isn't exactly making money hand over fist.
Content will always be digested via some form of hardware.
They really should just stay out of originals if they aren't willing to spend. But even if they are, the only way they could ever be taken seriously in the streaming market would be to start making apps for alternative streamers like Roku and Amazon. What makes Netflix and Hulu so popular is that you can access them on pretty much anything. I have 10 devices all from various brands and on each one I can get a similar experience for Netflix or Hulu. It would take that for Apple to really be successful in the market. I just don't see how they could make enough money back without expanding to non-Apple devices.
I'm not sure being in the 'content' game is the best place to be right now, unless you want to lose a lot of money. Amazon and Netflix have created an artificial market at this time, paying vast sums for material that will make them nothing back directly. Amazon needs you to buy more stuff and always be thinking of their site and Netflix must have subscriber growth. But all this will end at some point. I'm guessing at some point Amazon will cut in half what they are paying and Netflix will follow. Most content companies have the make the money they spend making content back from the content (or licensing). Netflix and Amazon and Hulu to some extent are trying to build eyeballs and in Amazon's case it's more a marketing expense than a content expense. Apple would be wise to wait and see what happens.
Or, they are simply wise enough not to encourage and get into bidding wars that end up costing companies like Netflix $40 million dollars for TWO episodes. There might be a reason every other company is losing money on so many things, e.g., cell phones.
I've been saying this forever. The whole industry needs to be blown up and Apple doesn't want to do it. Apple needs to license, produce and bid for content and bring all of it Netflix style to IOS devices.
They can contract someone like Christopher Nolan to run a mythical "Apple Studios" and get out of the way
Yea - this is going to cost a lot of money but this will provide another revenue stream and provide them the exclusive content they need.
Apple is sitting out overpriced deals and nabbing the underpriced ones. It's called smart shopping
Even Nolan relies on his brother Jonathan for screenplays. In the last six years he released "Person of interest" and "Westworld". It takes years to develop this projects and we consume them in 45 minutes per episode. You'll need Nolan2 , Nolan3 ... Nolan15 to stay at pace
Some key business world reality check facts:
1) Many folks don't seem to understand that once Apple would acquire a company like Netflix they would become a major deep pocket competitor to other content companies that Apple relies on for iTunes, Apple TV, etc. As a competitor, other companies would have disincentive to assist Apple by licensing content to Apple or Netflix.
2) Netflix value is that it is cross platform. If Apple offers it as exclusive/incentive for Apple TV, it would immediately destroy much of Netflix value. Many content companies only reluctantly license material to Netflix because Netflix can pay large amount of money based on huge number of subscribers.
Apple users already have access to Netflix and since Netflix needs to remain cross platform to retain much of its content and value, it is questionable as to what would Apple gain by buying Netflix. It would be easier and much less risky to offer discount by forgoing their 30/15% cut.
3) Netflix is only marginally profitable. It has shaky future as it is relying on content from other companies that know Netflix is growing competitor in content. If companies don't make those licensing deals, Netflix is dead.
Apple has undoubtedly considered Netflix purchase, but it is not clear that it is a wise choice for them.
1) Many folks don't seem to understand that once Apple would acquire a company like Netflix they would become a major deep pocket competitor to other content companies that Apple relies on for iTunes, Apple TV, etc. As a competitor, other companies would have disincentive to assist Apple by licensing content to Apple or Netflix.
2) Netflix value is that it is cross platform. If Apple offers it as exclusive/incentive for Apple TV, it would immediately destroy much of Netflix value. Many content companies only reluctantly license material to Netflix because Netflix can pay large amount of money based on huge number of subscribers.
Apple users already have access to Netflix and since Netflix needs to remain cross platform to retain much of its content and value, it is questionable as to what would Apple gain by buying Netflix. It would be easier and much less risky to offer discount by forgoing their 30/15% cut.
3) Netflix is only marginally profitable. It has shaky future as it is relying on content from other companies that know Netflix is growing competitor in content. If companies don't make those licensing deals, Netflix is dead.
Apple has undoubtedly considered Netflix purchase, but it is not clear that it is a wise choice for them.
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Are you f**** kidding me?
I don't want to censor Michael Moore, but is Eddy Cue and Tim Cook trying to destroy the company?
Let YouTube handle it! Because lots of Nazis (the people that think Trump is for them) are going to see Apple as Satan and target their stores and their products.
Be real, AAPL. You aren't going to get any money, any praise, any whatever by sponsoring Michael Moore.
So in other words, Apple is charging record amounts for their products but won't cough up a penny for decent original content? They're going to fail hard. Amazon and Netflix will kill them.