Apple's own version of Netflix?

[sdilley14]

I just thought about this. Why hasn't Apple launched it's own version of Netflix? I wouldn't ever see them creating original content...but why not offer a streaming service like Netflix for all of the TV shows and movies available on iTunes (or maybe not "all", but at least some)? They obviously have the platform to do it, they have the built in customer base with iTunes, they have all the content they would need, and they are obviously pretty familiar with how streaming services operate.

They are getting into the streaming music service with Beats. Why not the streaming video service? I would say "maybe it's in the works", but you usually catch a whisper or rumor of such things, and I have never heard any mention or thought of this at all.

 

[pdjudd]

Streaming videos is slightly different and is going to detail a whole different set of rights than streaming music (in which are mostly settled thanks to radio). I doubt that Apple really wants to get into that market when there are several companies that they work well with and I doubt that they want to create a situation where they are competitors with their partners.

It would be insanely complex since not all of their media that they sell can be streamed and the rights expire at such odd timing factors that would generate a lot of grief.

Plus there is the tendency for content owners to get into the distribution market for streaming on their own. Take Discovery, they own a ton of content, much of which is for sale at Apple. Note that they don’t stream it anywhere but their own website now. They let all of their prior contracts expire and are doing it themselves so they can monetize it themselves. Sales are one thing, but streaming is seen as far more valuable for content owners.

 

[sdilley14]

Streaming videos is slightly different and is going to detail a whole different set of rights than streaming music (in which are mostly settled thanks to radio). I doubt that Apple really wants to get into that market when there are several companies that they work well with and I doubt that they want to create a situation where they are competitors with their partners.

It would be insanely complex since not all of their media that they sell can be streamed and the rights expire at such odd timing factors that would generate a lot of grief.

Plus there is the tendency for content owners to get into the distribution market for streaming on their own. Take Discovery, they own a ton of content, much of which is for sale at Apple. Note that they don’t stream it anywhere but their own website now. They let all of their prior contracts expire and are doing it themselves so they can monetize it themselves. Sales are one thing, but streaming is seen as far more valuable for content owners.

All very valid points! Though it would be insanely challenging and complex - Apple has been the company to master pulling off the "impossible". If it widens their footprint, supplements/enhances their current hardware and software offerings, and there is money to be made - I don't see why they wouldn't make a run at it. They have managed to completely change the music and cellphone industries - getting into this business doesn't seem like a stretch.

 

[pdjudd]

Honestly that point is really moot and can be used to justify any argument. Apple is good at the impossible so surely they can do X. Maybe. But that’s not an argument for them to do such a thing. And mastering one market doesn’t mean that they can master all markets, so there is that.

I am not saying that it’s impossible for Apple to do that, it’s just that there is no driving reason for Apple to do such a thing (IMO). Apple doesn’t just do things for the hell of it. They do it because they think they can do well in it and make tons of money. I don’t see streaming video being that thing. Maybe they can do OK at it, but I don’t see the value it for Apple. Look at Netflix. They only make a few billion every year. And one thing they do (most recently) that Apple doesn’t is content production. Note that I might be totally misreading their financials.

Why do you think Apple would want to take on another business method that isn’t going to net them a ton of money - their content sales business isn’t even intended to make them much in the first place.

In short. I don’t find those counter arguments very convincing. They are more general platitudes and not universal proofs. Heck, they aren’t really proof of anything other then the notion that Apple can do anything by sheer optimism. I like Apple and I think they are capable of great things. I don’t see them going in that direction when they make more money off of really profitable hardware. It’s a market where they don’t control the content and are handling other people’s stuff. I don’t see it as a priority.

 

[sdilley14]

Honestly that point is really moot and can be used to justify any argument. Apple is good at the impossible so surely they can do X. Maybe. But that’s not an argument for them to do such a thing. And mastering one market doesn’t mean that they can master all markets, so there is that.

I am not saying that it’s impossible for Apple to do that, it’s just that there is no driving reason for Apple to do such a thing (IMO). Apple doesn’t just do things for the hell of it. They do it because they think they can do well in it and make tons of money. I don’t see streaming video being that thing. Maybe they can do OK at it, but I don’t see the value it for Apple. Look at Netflix. They only make a few billion every year. And one thing they do (most recently) that Apple doesn’t is content production. Note that I might be totally misreading their financials.

Why do you think Apple would want to take on another business method that isn’t going to net them a ton of money - their content sales business isn’t even intended to make them much in the first place.

In short. I don’t find those counter arguments very convincing. They are more general platitudes and not universal proofs. Heck, they aren’t really proof of anything other then the notion that Apple can do anything by sheer optimism. I like Apple and I think they are capable of great things. I don’t see them going in that direction when they make more money off of really profitable hardware. It’s a market where they don’t control the content and are handling other people’s stuff. I don’t see it as a priority.

All very good points again. I guess I was more so just "thinking out loud" on the topic. They acquired Beats mostly for their streaming music services. Streaming video is obviously a huge business as well. And they have all of the necessary hardware and software to deliver the service in a tightly integrated package. And there have been rumors for years now about Apple TV expanding and becoming much more than a "hobby". It seems like a reasonable thought. But I can also see the argument against it.

 

[s15119]

I think they are happy with the income they make "selling and renting" ala carte. I don't think it's to their advantage to move to all "all you can eat" model. It's just business.

 

[westrock2000]

Apple's servers are bad enough as it is. For such a major company I get very low download speeds from them.

You also have to understand that Netflix has physical servers installed throughout the world at ISP's that host the most popular content. This allows Netflix content to not have to traverse the entire Internet to get to you.

http://gizmodo.com/this-box-can-hold-an-entire-netflix-1592590450

This is where the trouble starts. Apple can't possibly expect to shoulder that burden (cost) of using solely their servers and network backbones. But the ISP's aren't going to <willingly> accept having to maintain yet another streaming box connected to their local networks.