Apple Buying Netflix: Does a media acquisition make sense for Apple? Would it be a good strategic move for Apple to buy Netflix? Although Apple has been a successful player in the hardware industry, they’ve never been in the media space. That said, tvOS, Apple’s TV operating system was just introduced to the Apple ecoSystem. Earlier we wrote about the further of Apples Operating System, check it out here.
Apple’s Move into TV
Greg Joswiak, Apple’s vice president of Product Marketing explains that tvOS, “powers the Apple TV 4K experience and continues to set the standard for home entertainment”. Apple is betting big on producing original content. In fact, Apple just launched a new streaming service at the end of March. Since they’ll be a player in this place they should acquire a leader. In doing this, Apple will be able to immediately position itself against other competitors like Amazon. With almost $250 Billion in cash, Apple would have plenty to buy a majority share in Netflix. Netflix has a market cap of $158 billion.
Apple’s website explains that its streaming service, Apple TV+, will be “featuring original shows and movies across every genre”. By buying Netflix, Apple will be able to acquire industry leading professionals. In addition, it will be able to compliment the existing content if they still wanted to come out with their own streaming service. Think Apple’s acquisition of Beats. Not only did they get a great team, but they’re also able to compliment their existing products. In fact, there is a lot of opportunity to invest before Apple cannibalize their own customers.
Don’t believe us? Think Disney and Hulu. In May, Disney made a move to buy a majority stake in Hulu. Just a little over a month later, Disney released a new streaming service called Disney Plus. Although the content will be more differentiated than Netflix and Apple, it’s a clear example of how Disney can have two streaming platforms coincide.