Monday, September 14, 2015

Apple TV or the next Netflix?

Marco Rima
Apple TV or the next Netflix?
CNN Money released an article on September 2, Netflix CEO: No big deal if Apple makes TV by Kristie Lu Stout and Charles Riley, the article focuses on how Netflix CEO Reed Hastings is not concerned about the rumors around Apple making a TV that would “challenge streaming services like Netflix and Traditional TV networks like ABC.” Hasting is not concerned because he does not fear competition nor that Apple will dominate the original programming market and stunt their growth. Hastings says himself in the article, “the fact that additional tech companies may be doing shows, that’s really not that big a deal given the total number of shows being produced around the world.” Hastings welcomes competition with open arms as Blockbuster did with Netflix and their video on-demand via the Internet; however Netflix investors and their attitudes towards Apple TV do not run parallel with Netflix CEO Reed Hastings, in return Netflix shares fell 8% on Tuesday on the heels of rumors being released that Apple is in the works of such a product that will challenge Netflix’s streaming service.
Netflix will be launching in Japan this week and according to Hastings and the CNN article “plans to be in every country in Asia by next year – including China and India”, Hasting’s is expanding his company and diversifying to hedge against risk and his competitors, however what Hastings must not forget is the history of Netflix. Netflix usurped the thrown of DVD/Movie provider by becoming the king, or queen, of streaming, however Apple is more than a worthy opponent to develop a product or service to compete against Netflix within the online Movie/TV streaming market and as the Apple Watch has proven Apple is willing to expand their product line and try to reach out into a new market space and be leaders within a market that has already been established. Netflix CEO Reed Hastings should view the rumors around Apple TV as a big deal and not some lame attempt by one of its smaller competitors.
             The article addresses how Apple may be taking the route in which it took with Apple Music “financing music documentaries or concert films” In this case, yes Hastings has very little to worry about, however if Apple TV is an online streaming service Netflix will begin an “intense competition for audience attention and subscription dollars”. If Netflix’s CEO Reed Hastings continues to view Apple TV as “No big deal” and not plan ahead in attempt to keep Netflix’s competitive advantage and customer loyalty then he is leaving the door open for history to repeat itself, this time rather than having Netflix as the usurper, they shall be usurped by Apple TV. Then will Apple TV be a “big deal” for the Netflix CEO?

1 comment:

  1. In my opinion, Netflix needs to watch out for any competition out in the market. Just like how Blockbuster did not watch out for Netflix, Apple TV may takeover and become the norm. Blockbuster was at its peak of making a lot of money, but once Netflix created the online site in which people can watch television shows and movies without going to a local Blockbuster store and returning it days later, Blockbuster was immediately shut out of business. As of right now, Netflix is the #1 source for all things TV related. Everyone has a Netflix or is borrowing an account from their family or friends. Apple is also the #1 source for anything phone related: although Samsung and Android have great phones, Apple is still the top pick for most of population. It would be interesting to see who will come out on top. Apple Music/Beats has not completely taken over Spotify but has made great strides. I wonder how Apple TV will compete against Netflix and if it will be effective. Either way, Netflix should keep watch and see what Apple is up to, as they are an unpredictable company that can roll out anything they want.


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