Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Streaming TV Service Revenue Will Be a 'Drop in the Bucket' for Apple, Even If It Rivals Netflix
- Thread starter MacRumors
- Start date
- Sort by reaction score
I’ll have 5G service, but Verizon already has data caps now and I don’t see them doing away with them. And no one else is putting up cell towers in my rural area so it’s going to be Verizon or no one for data choices. Unless Musk does build his satellites network. I’m in a wait and see mode with that.
Why lie? Apple's other services like Apple Music are not double other streaming services.
[doublepost=1550513304][/doublepost]
Nobody. Which is why there will be much, much more to the service.
You mean the hardware sales of all the new TVs from Samsung & Co that will be compatible with it? The latest Samsung TVs can play movies bought or rented in iTunes as well as act as Airplay 2 targets, it's hard to believe that a new streaming service wouldn't be added to that.
Plus there is this report saying that Apple doesn't make any profit from the Apple TV.
[doublepost=1550514850][/doublepost]
I think this is a situation where Hanlon's razor should be applied.
Apple likes the side shows with the highest net profit and with the least amount of effort.
I think he’s exaggerating to make a point. Even if Apple gets an incredible number of subscribers, the revenue it would bring in would be minimal in the overall scheme of things when it comes to Apple as a company.
Agreed! Apple should have bought Netflix long time ago rather to try to compete with other companies that are light years ahead of them.
No one will pay a monthly fee for Apple video content since they only will have just a few shows to watch.
Has apple given a value proposition to their new TV service other than they have a bunch of suckers already on board? Netflix was huge because it was disruptive and changed the market. Apple's TV service is the biggest, blandest "me too" anyone could have possibly imagined.
A service from Apple NO ONE is asking for... the market is already too saturated. They would be better off using those resources to make the existing products and services better. Like Apple Music. I’m still on Spotify because the feature set and cross platform integration is far above what Apple offers. If Apple offered those features in addition to their product integration, I would be more compelled to switch.
Netflix still isn’t really profitable, plus they have taken on a fair amount of debt. With other companies like Disney entering the streaming scene, I will say that the true battle is only just beginning.
Netflix isn’t invincible, and I wouldn’t be so quick as to write off the whole streaming wars as a foregone conclusion just yet.
Which is why I suspect that Apple will initially make their video streaming service free of charge. They might start charging a couple of years down the road once they have more shows under their stable, each with more than a few seasons.
I don’t think it makes financial sense for Apple to have bought Netflix though. You can just negotiate for the streaming terms on your own, and Netflix’s original content is pretty lacklustre. Netflix doesn’t really have any proprietary technology that would really benefit Apple either.
It’s just too much money for too little benefit.
Gee I don’t *think* any level minded financial analyst is really getting the farm on a context sub “saving” Apple from itself. They’ve got plenty of hot products that have huge upside - watch, AirPods, iPad...
If Apple does what Apple does - creating great consumption devices which stands now north of a billion units, they’ll b fine....
If Apple does what Apple does - creating great consumption devices which stands now north of a billion units, they’ll b fine....
Value in today’s dollars? Seems like a bit of a stretch what you say. You are talking about history. Dutch East India Company? What do they sell? Spice? Lol.
[doublepost=1550531874][/doublepost]
Netflix has improved a great deal in the last 2 years. I subscribed for years and almost never watched anything from Netflix. I was gonna cancel, but noticed a ton of good shows on there now. Netflix finally is worthwhile - after all these years.
Apple can try to compete - the only real danger for Apple would be if they try to keep all content “G” rated. They need some juicy salacious content like what HBO offers and Netflix offers. Shows like Band of Brothers. Rome, Deadwood, Westworld. Black Mirror from Netflix was excellent. Stuff like that. If Tim Cook tried to make it a Disney only type of offering, it won’t catch on as much.
Rather than spending multiple billions per year going forward to try and compete with Netflix in order to build a big streaming TV service that would, in a best case scenario, add relatively little profit to the company's bottom line, perhaps Apple is wise to recognize that hardware is and always will be their main money maker. So maybe their original TV content should just be an affordable expenditure (~$1 bn per year) that will be exclusively available via Apple hardware, in an effort to further differentiate that hardware and keep folks in the Apple ecosystem. I've seen no signs yet that Apple *really* wants to be a content player. Sure, spending $1 bn on original content sounds like a lot but it's not a lot for Apple. (They were spending over $1 bn on advertising alone several years ago.) Maybe at some point this new original TV content thing grows up into a profit center rather than a cost center but, to begin with, I can see it simply being something to draw folks to Apple hardware.
That’s the thing about Netflix. 90% of the time, I am like “WTF am I paying $10 a month for again?”, and the other 10%, I am thankful that I did (just binge-watched Fate: Stay Night over 4 days).
Right now, Netflix just feels like one of those things I keep around because $10 a month doesn’t break the bank and I simply can’t be bothered to cancel it.
Who said it’s going to be proprietary?
iTunes was available on Windows. It wasn’t that Apple forced you to own Apple hardware, it’s that they had an opportunity to show you how the Apple experience was and it was better on Apple hardware.
That’s true but sometimes that drip is the blood of your customers and now they are just empty husks left tangled in the spiderwebs.
[doublepost=1550551596][/doublepost]
I bought some Netflix shares recently. Thought why not take a chance. Before they report earnings? They did okay with their report and it surged but when I looked at the numbers more carefully I decided to jump ship and get out of Dodge.
They will be buried in debt until the end of time when they lose the content they are expected to. I can’t imagine they re going to do very well when the sharks start circling.
If you don’t know much about streaming technologies, how do you make that conclusion?
A quick internet search will tell you what proprietary technologies they offer. I don’t think Apple should buy them because of cultural and business conflicts, but Netflix is leaps ahead of Apple when it comes to proprietary streaming technologies.
It's worth noting it's very good for Americans. You reside in Singapore. I suspect the library is very different for you.That’s the thing about Netflix. 90% of the time, I am like “WTF am I paying $10 a month for again?”, and the other 10%, I am thankful that I did (just binge-watched Fate: Stay Night over 4 days).
Right now, Netflix just feels like one of those things I keep around because $10 a month doesn’t break the bank and I simply can’t be bothered to cancel it.
[doublepost=1550557965][/doublepost]
And what's in interviews is what Netflix decided to make public. Never show all your cards.
re: PetroChina, that’s debatable. I think @WildCowboy explained it well here:
https://forums.macrumors.com/posts/26310528/
If anything i would have expected the opposite... Unlike most other services, Apple has a reputation, often long reputation for keeping purchased movies around allot longer, which indicates they have better deals in some cases to. I've never seen a movie disappear from my purchased history because of expired or anything. Something Netflix does all the time, even though they are more likely to get content.
Knowing that long standing with Apple, i would have thought they would have better deals to offer too. No ?
Knowing that long standing with Apple, i would have thought they would have better deals to offer too. No ?