Should Apple buy Netflix or just crush it?

TweetFollow Us on Twitter

Should Apple buy Netflix or just crush it?


While Steve Jobs glibly passes the AppleTV device off as a "hobby", he is too smart to have missed the big picture, as broadcast, cable TV and even satellite TV seem to have peaked and are in a slow decline in both customers and revenue. Then you see Blockbuster and countless other smaller video rental places in decline, you have to ask the question, where are the customers going?  DVD disk sales can't be the answer either.  

Digital TV and High Definition TV have made inroads faster than prior TV technology. It was years before VHS penetrated the market and became very common. DVD disks have already peaked and Blu-ray has now begun its reign since it clobbered the other high def. format.  I expect the period Blu-ray is popular to be short, as streaming HD entertainment is going to be the next wave.  The high speed Internet service that is required  to make downloading HDTV programing fast enough to be practical is becoming an expected level or service these days.

Apple normally sees a business opportunity and figures out how to do it better and overcome the user interface issues that consumers hate. Take the cell phone as an example. In the past, even an "Internet ready" cell phone didn't mean the iPhone experience we have today.

About five years ago, while I was still being abused by Sprint, I purchased a cell phone that was
intended to allow me to check my email over the network.  I paid a bit extra for that service but never could get it to work.  I went to a Sprint store and no one there could get the phone to display my email either. What is wrong with this picture?  

That flip phone was a Motorola product and the convention at that time was the problem. No one at any of the cell phone companies or phone manufacturing realized the potential. Remember the Apple cell phone that Motorola put together? You might as well have super glued an iPod to the back of a cell phone for whatever integration you might have. That phone was a flop because something was missing.  The "Apple magic" that divides the user experience as being "Apple" or Microsoft in tone, disappointed users. Apple realized they would have to start from the ground up to make the "iPhone" fulfill the potential of a true "smart phone." 

The ironic issue, is that even when creatively challenged people see the "next big thing," most of them fail to fully understand why it is going to become the standard, until it is already well established. That is where the followers come in. They never really innovate, they just knock off what the leader does and hope to cash in before the technology ages.

Even Bill Gates understood the phenomenon, if not grasping the ability to truly innovate himself, when he said "the company that fails to obsolete its own products will see the  competition do it." Microsoft is proof that timely marketing and blind luck are still a way to make a killing by copying the brilliance of others.  

Apple has already proven that selling digital content on line is big business. The music industry, iPod and the iTunes store tell the story. This is the future of video as well. Then comes the question, it there enough value to Apple to warrant buying Netflix? A large customer base is of value. With a market cap of US$5.31 billion and Apple valued at $242 billion, if Apple wanted to buy Netflix, they likely could.  

I put my money on Apple crushing Netflix through brutal competition using the iTune model and that new server farm being built on the East Coast. Look for a new and better AppleTV device complete with DVR functions to make it both a download device with  storage and also an Apple user interfaced DVR. I expect all this sooner rather than later.

An Apple 3D High Definition TV or box is not out of the question. Keep in mind the new iPad format is just out of the box. How long will it be before it come out with a larger screen that will handle full HD video? The foray of Apple into advertising also tends to support my thoughts that more video digital content distribution from Apple is just around the corner....  

-- Greg Mills

Greg Mills does faux wall art (http://www.gregmills.info/GregMills.info/Home.html) and runs Cottage Industry Solar Shops (http://www.cottageindustrysolar.com/cottageindustrysolar/Home.html).

 
AAPL
$98.15
Apple Inc.
-0.23
MSFT
$43.58
Microsoft Corpora
-0.31
GOOG
$587.42
Google Inc.
+1.81

MacTech Search:
Community Search:

Software Updates via MacUpdate

Knock 1.1.7 - Unlock your Mac by knockin...
Knock is a faster, safer way to sign in. You keep your iPhone with you all the time. Now you can use it as a password. You never have to open the app -- just knock on your phone twice, even when it's... Read more
Mellel 3.3.6 - Powerful word processor w...
Mellel is the leading word processor for OS X and has been widely considered the industry standard since its inception. Mellel focuses on writers and scholars for technical writing and multilingual... Read more
LibreOffice 4.3.0.4 - Free Open Source o...
LibreOffice is an office suite (word processor, spreadsheet, presentations, drawing tool) compatible with other major office suites. The Document Foundation is coordinating development and... Read more
Freeway Pro 7.0 - Drag-and-drop Web desi...
Freeway Pro lets you build websites with speed and precision... without writing a line of code! With it's user-oriented drag-and-drop interface, Freeway Pro helps you piece together the website of... Read more
Drive Genius 3.2.4 - Powerful system uti...
Drive Genius is an OS X utility designed to provide unsurpassed storage management. Featuring an easy-to-use interface, Drive Genius is packed with powerful tools such as a drive optimizer, a... Read more
Vitamin-R 2.15 - Personal productivity t...
Vitamin-R creates the optimal conditions for your brain to work at its best by structuring your work into short bursts of distraction-free, highly focused activity alternating with opportunities for... Read more
Toast Titanium 12.0 - The ultimate media...
Toast Titanium goes way beyond the very basic burning in the Mac OS and iLife software, and sets the standard for burning CDs, DVDs, and now Blu-ray discs on the Mac. Create superior sounding audio... Read more
OS X Yosemite Wallpaper 1.0 - Desktop im...
OS X Yosemite Wallpaper is the gorgeous new background image for Apple's upcoming OS X 10.10 Yosemite. This wallpaper is available for all screen resolutions with a source file that measures 5,418... Read more
Acorn 4.4 - Bitmap image editor. (Demo)
Acorn is a new image editor built with one goal in mind - simplicity. Fast, easy, and fluid, Acorn provides the options you'll need without any overhead. Acorn feels right, and won't drain your bank... Read more
Bartender 1.2.20 - Organize your menu ba...
Bartender lets you organize your menu bar apps. Features: Lets you tidy your menu bar apps how you want. See your menu bar apps when you want. Hide the apps you need to run, but do not need to... Read more

Latest Forum Discussions

See All

Empire Manager (Games)
Empire Manager 1.0 Device: iOS iPhone Category: Games Price: $3.99, Version: 1.0 (iTunes) Description: Become ruler of an empire. Manage your economy, develop technology, hire an army and conquer the world in this addictive turn-... | Read more »
Empire Manager HD (Games)
Empire Manager HD 1.0 Device: iOS Universal Category: Games Price: $7.99, Version: 1.0 (iTunes) Description: Become ruler of an empire. Manage your economy, develop technology, hire an army and conquer the world in this addictive... | Read more »
Star Admiral Review
Star Admiral Review By Rob Thomas on July 30th, 2014 Our Rating: :: ADMIRABLE ADMIRALSUniversal App - Designed for iPhone and iPad While this new digital CCG may feel a bit familiar, Star Admiral offers a sci-fi twist and galaxy’s... | Read more »
Zap! Pow! Become a Badass Wizard in Phan...
Zap! Pow! | Read more »
Urban Trial Freestyle Review
Urban Trial Freestyle Review By Blake Grundman on July 30th, 2014 Our Rating: :: RIDIN' DIRTYUniversal App - Designed for iPhone and iPad A rough ride that has trouble keeping its wheels on the track.   | Read more »
Take Note! Noteshelf Has Recieved a Big...
Take Note! Noteshelf Has Recieved a Big Update. Posted by Jessica Fisher on July 30th, 2014 [ permalink ] iPad Only App - Designed for the iPad | Read more »
Cubama Review
Cubama Review By Nadia Oxford on July 30th, 2014 Our Rating: :: TETRIIIIIS IIIIIN SPAAAAACE!Universal App - Designed for iPhone and iPad With its addictive challenge and interesting premise, Cubama is frantic screen-tapping fun.   | Read more »
Become a Guardians of Galactic Peace Wit...
Become a Guardians of Galactic Peace With the New Spacefaring Sim, Kairobotica. Posted by Jessica Fisher on July 30th, 2014 [ permalink ] | Read more »
Soul Guardians: Age of Midgard Review
Soul Guardians: Age of Midgard Review By George Fagundes on July 30th, 2014 Our Rating: :: SO MUCH GRIND IT CRUNCHESUniversal App - Designed for iPhone and iPad Swords and trading cards are fun, right? So is Soul Guardians: Age of... | Read more »
NFL Fantasy Football App Redesigned Ahea...
NFL Fantasy Football App Redesigned Ahead of Upcoming 2014 Season Posted by Ellis Spice on July 30th, 2014 [ permalink ] | Read more »

Price Scanner via MacPrices.net

Save up to $140 on an iPad Air with Apple ref...
Apple is offering Certified Refurbished iPad Airs for up to $140 off MSRP. Apple’s one-year warranty is included with each model, and shipping is free. Stock tends to come and go with some of these... Read more
$250 price drop on leftover 15-inch Retina Ma...
B&H Photo has dropped prices on 2013 15″ Retina MacBook Pros by $250 off original MSRP. Shipping is free, and B&H charges NY sales tax only: - 15″ 2.3GHz Retina MacBook Pro: $2249, $250 off... Read more
More iPad Upgrade Musings – The ‘Book Mystiqu...
Much discussed recently, what with Apple reporting iPad sales shrinkage over two consecutive quarters, is that it had apparently been widely assumed that tablet users would follow a two-year hardware... Read more
13-inch 2.5GHz MacBook Pro on sale for $999,...
Best Buy has the 13″ 2.5GHz MacBook Pro available for $999.99 on their online store. Choose free shipping or free instant local store pickup (if available). Their price is $100 off MSRP. Price is... Read more
Save up to $300 on an iMac with Apple refurbi...
The Apple Store has Apple Certified Refurbished iMacs available for up to $300 off the cost of new models. Apple’s one-year warranty is standard, and shipping is free. These are the best prices on... Read more
WaterField Unveils 15″ Outback Solo & 13″...
Hard on the heels of Apple’s refreshed MacBook Pro Retina laptops announcement, WaterField Designs has unveiled a 15-inch version of the waxed-canvas and leather Outback Solo and a 13-inch version of... Read more
New Roxio Toast 12 Delivers Digital Media Pow...
Roxio Toast 12 is a hub for sharing digital media to virtually any platform or device. has introduced two new additions to its Roxio Toast product family – Roxio Toast 12 Titanium and Roxio Toast 12... Read more
The lowest prices on leftover Retina MacBook...
Best Buy has dropped prices on leftover 13″ and 15″ Retina MacBook Pros by up to $300 off original MSRP on their online store for a limited time. Choose free local store pickup (if available) or free... Read more
Apple Updates MacBook Pro with Retina Display...
Apple today updated its MacBook Pro with Retina display with faster processors and double the amount of memory in both entry-level configurations. MacBook Pro with Retina display features a Retina... Read more
Up to $250 price drop on leftover 15-inch Mac...
B&H Photo has dropped prices on 2013 15″ Retina MacBook Pros by as much as $250 off original MSRP. Shipping is free, and B&H charges NY sales tax only: - 15″ 2.3GHz Retina MacBook Pro: $2349... Read more

Jobs Board

Sr Software Lead Engineer, *Apple* Online S...
Sr Software Lead Engineer, Apple Online Store Publishing Systems Keywords: Company: Apple Job Code: E3PCAK8MgYYkw Location (City or ZIP): Santa Clara Status: Full Read more
Sr Software Lead Engineer, *Apple* Online S...
Sr Software Lead Engineer, Apple Online Store Publishing Systems Keywords: Company: Apple Job Code: E3PCAK8MgYYkw Location (City or ZIP): Santa Clara Status: Full Read more
*Apple* Solutions Consultant (ASC) - Apple (...
**Job Summary** The ASC is an Apple employee who serves as an Apple brand ambassador and influencer in a Reseller's store. The ASC's role is to grow Apple Read more
Sr. Product Leader, *Apple* Store Apps - Ap...
**Job Summary** Imagine what you could do here. At Apple , great ideas have a way of becoming great products, services, and customer experiences very quickly. Bring Read more
*Apple* Solutions Consultant (ASC) - Apple (...
**Job Summary** The ASC is an Apple employee who serves as an Apple brand ambassador and influencer in a Reseller's store. The ASC's role is to grow Apple Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.