Deals Already in Place for Apple to Launch Netflix Competitor?

[paul4339]

I can't wait to see iTunes Replay deliver the deathblow to Netflix. By no stretch of the imagination can a one-trick pony like Netflix have a higher valuation on Wall Street than Apple. Someone has got to put an end to Wall Street's wacky valuations based on absolutely nothing substantial. How the hell can Netflix have a share price of $250 or so with a P/E of 63 based on some streaming capabilities that I'm sure even Amazon can beat? ....

I agree that Netflix maybe overpriced... but Amazon is at 93 P/E. Both are probably over priced... You can't compare Netflix P/E to that of Apple because Netflix is solely a service provider (no inventory), they also rent Amazon's S3 cloud for delivery, so they have minimal fixed assets.

I think it's overpriced, because there's no major barriers to entry (another major company can also rent Amazon's S3 cloud and provide a competing service ... so it can end up being a price war).

Wishing a 'deathblow' is a different matter, Netflix is just trying to grow their company, it's the investors that a crazy enough to pay that kind of P/E.

.

 

[akm3]

Will this mean that they will remove Netflix from the AppleTV? I hope not.

Exactly. I'm all for an Apple competitor to Netflix, but it would be a grievous mistake in my opinion to ditch the competition from AppleTV...but it does sound Applish doesn't it.

Well, in my case as long as the Apple competitor is as good for similar prices (selection, quality, etc) since I'm "all Apple" device anyway, I guess it wouldn't matter to me.

 

[citi]

I would like to see a Netflix style service thats not Netflix. Cheaper?

Cheaper the 8$? From ?

Good luck with that.

 

[bobr1952]

Will this mean that they will remove Netflix from the AppleTV? I hope not.

Well I don't see Amazon on ATV so that should tell you something.

 

[Xian Zhu Xuande]

I want this to happen. I very much would like to completely ditch Netflix, and hopefully one day, my cable company. I didn't care so much before Netflix's recent price hike.

If I can get something which combines subscriptions with paid content at appropriate prices, or a better package which combines attributes of Hulu and Netflix, I'll ditch the cable company too. And aside from the established competitors in the industry making the right moves, as far as I can tell, it seems like Apple is the only company properly positioned to come in and crash the banquet.

 

[Porchland]

Meh, I have NETFLIX. I don't need another netflix - I need something BETTER!! Give me the ability to stream an extensive content selection of shows - give me the ability to drop my cable subscription and I'll gladly pay $30/month.

Apple has shown us over and over that they are apparently the only company that can come in and shake up an entire industry. Please Please PLEASE do this to the Cable/TV industry Apple. We need it!

I don't see Apple rolling out a catalog TV/movie streaming service for $8 a month that is essentially the same content package that Netflix has for $8 a month. Apple will differentiate with exclusive and more recent content even if the package costs more.

If the cable networks are not going to open up current content to iPads, laptops, etc., unless you have a cable or satellite subscription -- and, let's face it, they're not -- then I'd like to see Apple market an anywhere/anytime streaming package for $10 a month that is exclusive to cable and satellite subscribers. Basically, it's HBO Go and the CNN iPad app -- which require a cable/satellite log-in -- for essentially all of the non-premium networks.

I'd rather pay $50 a month for anywhere/anytime access to the same content and ditch cable, but the networks are not going to allow that to happen.

 

[King Flamez1]

i hope they allow integration into the xBox/ps3 so i can stream through there instead of having to buy an Apple TV

 

[citi]

Well I don't see Amazon on ATV so that should tell you something.

Not quite the same. Netflix basically made the iPad a wanted device. They know without things like Netflix or HBOGO, Kindle, that people would go to another device. The same has to be said for the AppleTV. People purchased it FOR Netflix. (and to stream from their PCs of course). If you remove it, you will alienate a very large crowd.

Keep in mind, it's only 99$ I could walk away from that purchase easily. It's not like I bought a 800$ iPad and they removed the Kindle App.

 

[ULFoaf]

Timing couldn't be better to start competing with Netflix. They can obviously stand to have some competition. The recent price hikes tell me they don't seem to think they have any. There are other ways to watch movies, sure. I rent recently released HD movies on ATT Uverse and would be unlikely to ever run to a video store again. I haven't even bought a Blu-Ray player for this reason!

Interesting times since the whole concept of how movies are delivered to consumers is changing. Very similar to music in the late 90s.

 

[SmileyBlast!]

I think Apple TV Streaming should have tiered pricing as opposed to a one size fits all model like Netflix.

You could have a Bronze, Silver and Gold Tiered system with Silver and Gold giving you access to newer releases but still at a fixed price
Bronze = $7.00 gets you 15 hours
Silver = $15.00 gets you 30 hours
Gold = $30.00 gets you 60 hours.

Or something like that.

 

[alent1234]

Don't forget that the issue is content. If apple, with all the money in the world, can get access to better content then they will win against any service - regardless of price. How nice would it be if hollywood trusts apple to store their content and then apple charges us for access. I'd ditch cable and netflix in a second.

it's not better content, it's content people want to see. netflix beat blockbuster because something like 30% of their rentals were old movies that only die hard movie fans wanted to watch. blockbuster only concentrated on new releases and catalog movies were given less shelf space

from what i'm reading most netflix streaming fans are loving the documentaries, not the latest shoot em up blockbuster

 

[citi]

i hope they allow integration into the xBox/ps3 so i can stream through there instead of having to buy an Apple TV

That totally goes against everything Apple stands for. Never going to happen.

Trust me though, Netflix is much better on the AppleTV. Just for the simple fact that it's dead silent and doesn't suck electricity like both of those devices, and I have both of those devices.

 

[Xian Zhu Xuande]

Trust me though, Netflix is much better on the AppleTV. Just for the simple fact that it's dead silent and doesn't suck electricity like both of those devices, and I have both of those devices.

Agreed. Netflix on PS3/XBox 360 is horrible. Aside from the power drain, the blaring fan is a pain in the ass. Love the Apple TV for that. My Blu-Ray player is also quiet, but it's hard to find a Blu-Ray player with an interface that doesn't make you want to punch executives.

 

[CWallace]

Unfortunately, I think they would have to kill off Netflix. If it is a true direct competitor, then keeping it would only encourage people to choose Netflix instead.

Then Apple would also have to kill the Netflix app for iPod/iPhone/iPad and stop the Netflix application from being able to run on OS X.

Sorry, but I don't see it happening. I fully expect Netflix will still be available on OS X and iOS even if Apple launches their own subscription streaming service.

 

[jonnysods]

This sounds like a US only thing to me.

As long as they don't pull Neflix, do whatever you want!

 

[Xian Zhu Xuande]

Then Apple would also have to kill the Netflix app for iPod/iPhone/iPad and stop the Netflix application from being able to run on OS X.

Well, no, they don't have to do anything in this regard. They've got the option of, say, removing Netflix from the AppleTV and keeping it on the iDevices. That said, they did just enable Vimeo, and it makes sense, perhaps, at some point to open the AppleTV up to apps. I don't think it will happen either.

There was a time I would have expected Apple to be a pretty straight arrow in this regard, but their handling with the 30% subscription cut was a pretty ruthless move as far as the likes of Amazon was concerned. I don't think they're completely above a relatively harsh business move which has some impact on their customers.

 

[CWallace]

Well, no, they don't have to do anything in this regard. They've got the option of, say, removing Netflix from the AppleTV and keeping it on the iDevices

The implication was that Apple would want to deny competition with an iTunes Streaming service and therefore remove Netflix from the TV. Well, the TV is not the only Apple-branded platform that is used to stream video content.

So if they want to deny competition on the TV, which has an insignificant market presence, I would expect they would want to deny it on iOS devices, which have a significant market presence.

*shrug*

 

[Cigsm]

LMFAOOOOOOOOOOOOOO. "Netflix basically made the iPad a wanted device"??? Um, are you on drugs? The Netflix app is a great app - FOR PEOPLE THAT HAVE THE NETFLIX STREAMING PLAN *AND* WANT TO WATCH TV ON THE GO. That's a small number compared to the amount of iPad's sold.

I'll break it down even further for you - the amount of people who bought an iPad FOR / BECAUSE OF Netflix is likely less than 1%. Netflix has 22 million subscribers. 40% of those are disc only, leaving 13 million streaming only or streaming / disc subscribers. As of July 11, there are over 25 million iPads in customers hands. In other words, there are almost double the amount of iPads out there, than there are Netflix streaming customers.

To just keep proving how wrong you are - the Netflix iPad app was released December 1, 2010. Apple had sold 14 million iPads BEFORE the Netflix app was out. So no, the iPad was a wanted device LONG before Netflix released an app.

Not quite the same. Netflix basically made the iPad a wanted device. They know without things like Netflix or HBOGO, Kindle, that people would go to another device. The same has to be said for the AppleTV. People purchased it FOR Netflix. (and to stream from their PCs of course). If you remove it, you will alienate a very large crowd.

Keep in mind, it's only 99$ I could walk away from that purchase easily. It's not like I bought a 800$ iPad and they removed the Kindle App.

 

[MacNewsFix]

If the catalog is more comprehensive than Netflix (which isn't bad) and even if slightly more expensive ($9.99 USD per month), I can see this driving many people to streaming for the majority of their TV viewing. Most of my friends have already cut the cord, and now spend the vast majority of their TV time watching Netflix, Hulu Plus, Amazon Instant, Sony's Crackle (Really, Sony? That's an improvement over Grouper? ), Vudu, etc, etc.

I think the biggest hindrance to online streaming and VOD is it's fractured nature. Fortunately, a few web sites/services have stepped up and made finding what is available where a little easier. Currently, I'm using Fanhattan for iPad to locate films (Uncle Walt's review).

 

[rumplestiltskin]

$74 billion in cash...for what?

You're reading it here first:

Apple will become an ISP using some wireless technology. They'll move from city to city installing a POP on the main trunk and have local contractors install transceivers in locations around each city. Which technology? Could it be WiMax? Doesn't matter as long as the router they provide to the consumer has WiFi and Ethernet ports on the LAN side. (Hmmm; sounds like it could be a combination router & AppleTV, eh?)

It's important to remember that AT&T and Comcast and TimeWarner have ALL openly stated (in public meetings they wish would have been private) that "anyone that wants to move their data across our network will have to pay us for the privilege". How long will those ISPs (who, in many cases, are simply vessels through which they can sell their content) put up with Apple doing an end-around? It's either total network neutrality (which the Republicans in Congress have been paid to vote against) or Apple provides a way around the problem.

Mark my words. It's going to happen.

Before you decide to disagree, remember that data center that Apple built? Do you honestly think iCloud is going to need that much space for some consumer data storage? There's much more that Apple wants to do with facility and it will take Apple becoming the next big ISP in order for this to happen.

Of course, they could simply buy one of the existing ISPs with a very small portion of that $74 billion. Then they get both the infrastructure and the content. However, will they even want the wired connectivity? Maybe; it gets them into the business immediately and in a big way while they build out the WWAN.

What about that combination of AppleTV and a widescreen TV in one that we've been reading about? Why bother? What advantage does that serve? Is it so difficult to connect an HDMI cable between the AppleTV and a TV? I'm supposed to junk my perfectly good HiDef TV because it doesn't have an AppleTV inside? Remember that Apple doesn't sell many displays any more because this was never their core competence. An all-in-one is one product that doesn't even pass the laugh test. Heck; I could equip every TV in my house with an AppleTV for less than the cost of one all-in-one.

 

[alent1234]

unless the law changed, apple will have to get permission from every city to do this and that means building yarn museums, being regulated by the PUC and all other kinds of ROI sucking rules

 

[samcraig]

LMFAOOOOOOOOOOOOOO. "Netflix basically made the iPad a wanted device"??? Um, are you on drugs? The Netflix app is a great app - FOR PEOPLE THAT HAVE THE NETFLIX STREAMING PLAN *AND* WANT TO WATCH TV ON THE GO. That's a small number compared to the amount of iPad's sold.


To just keep proving how wrong you are - the Netflix iPad app was released December 1, 2010. Apple had sold 14 million iPads BEFORE the Netflix app was out. So no, the iPad was a wanted device LONG before Netflix released an app.

You're wrong. Completely wrong. First - Netflix was available on the iPad since launch (http://blog.netflix.com/2010/04/netflix-available-on-ipad.html)

Second - the fact that Netflix WAS available on Day 1 influenced many early adopters. And if you deny that - then you're just being ignorant of have some wacky agenda you're trying to perpetuate.

So take your own advice and get off the drugs

 

[pmz]

I doubt Apple has ever seen itself in "competition" with Netflix, since they've never offered similar services. Apple has been happy to offer Netflix to its customers through Mac and every iOS Device.
Its one more thing that makes their devices sell.

For their own content, I'm sure they wish to make it a better value. Netflix offers more per dollar value than iTunes does, re: video. Apple naturally wants to improve that, and is only limited by the licensing issue. If Apple can offer what it carries on the iTunes store in terms of video, for $10 or less, unlimited streaming, then they'll have a companion to Netflix.

I don't see myself canceling Netflix just because Apple now offers subscriptions too. Apple has different content than Netflix. They could easily coexist, and not really compete.

 

[pmz]

I'd rather pay $50 a month for anywhere/anytime access to the same content and ditch cable, but the networks are not going to allow that to happen.

Of course not and we have to stop acting/talking like it might be what Apple is getting at. It's not. It can't be, because it would never be allowed.

Cable TV is where ALL the advertising is at. It's a huge business, and it will not go away without a big fight from the biggest power wielders in the nation (and the world). Advertisers are not going to give up their huge audiences, so that content can be made available ad-free for cheap.

 

[MadAppleLover]

Competition? for/to what?

If Apple want to succeed they need to do better than Netflix - i.e. better content at a comparable price.

If they really want to knock it out of the park they need to go head to head with the cable providers and provide a service that provides enough content at a price that will allow us to dump out cable/satellite providers. I for one would go there in a heartbeat!