Tuesday, Mar 02, 2021, 13:32 Economy

Should Apple Have Purchased Netflix? Analyst On Apple's "Biggest Strategic Error"

Those looking to purchase a subscription to an online video streaming platform have quite the choice: Next to Netflix, platforms such as Disney +, Prime Video, Hulu, and Apple TV+ are all vying for customers. Apple has been trying to win over customers by providing a free 1-year test phase, which was then further extended. The company hasn't had much success thus far. Now an analyst has chipped in his 2 cents, pointing to what he views to be a particularly poor decision on the part of Apple.

Apple TV+: Clinging For Life?
A look at the market of on-demand video services reveals that some video streaming services, Netflix above all, are currently experiencing a great deal of growth – partially due to the pandemic. Netflix currently encompasses one third of the entire market, whereas Apple TV+ ranks far behind, encompassing only 3%.

advertising


advertising


Dan Ives: Jobs' & Cooks' Error
According to analyst Dan Ives from Wedbush Securities, the current market division could have looked completely different. In an interview with Yahoo Finance, Dan Ives accuses Apple of having done everything but looking ahead. This criticism isn't only directed at new Apple CEO Tim Cook, but also the former CEO Steve Jobs. According to Ives, Apple it would've been a good idea for Apple to purchase Netflix several years ago. In Dan Ive's opinion, not doing so was, "The biggest strategic mistake... from Jobs and Cook over the last 10 to 12 years".

Acquisition Of A Film Studio?
Ives is also of the opinion that Apple should acquire a film studio, comparing Apple TV+ to a large, unfurnished villa. Ives would also advise Apple to get involved with a film production company such as MGM, Lionsgate, or A24, in order to shake its "outsider" status in the market. It's all about content.

More mtech.news articles you might enjoy to read: