Should Apple Buy Netflix Revisited

Street.com: "With a firm footing in the DVD mailing market, Netflix's move to Net streaming is a "potent combination," Collins Stewart analyst Sandeep Aggarwal writes in a research note initiating coverage with a buy rating. Netflix has an "unparalleled competitive advantage in the DVD rental business," Aggarwal writes"

While Apple buying Netflix is not a new idea, it's worth noting that the Apple TV is considered by Apple to be a hobby, when it could be used to help customers cut the cable TV cord by offering Netflix streaming & DVDs along with Apple's TV and movie shows for rental or purchase (add Hulu and it gets really interesting). Apple is rumored to be putting together an iTunes subscription offering, but Netflix already has 11 million subscribers and a growing number of consumer electronics devices ready for streaming, and Apple has 100 million customer credit cards and $34 billion in the bank. The combined company could quickly grow to compete with Comcast's 24 million subscribers and change how we watch TV.

What do you think? Should Apple buy Netflix? 

Comments

[Davis Freeberg]

If they did, it would be a sad day for me. Everything that Apple does is closed. They have their own hardware, software, content, etc. They control the entire eco-system so that when things go wrong, consumers have no options. Netflix is going the opposite route, they have been partnering with many different providers. This requires them to be more flexible and open when it comes to the needs of the consumer. If Apple controlled Netflix would Watch Now have ever come to a Samsung Blu-Ray player or a TiVo DVR? I don't think it would have because Apple wants to cash in on the whole thing. Now that we are seeing that the market is rejecting Apple's approach, companies like Netflix are finding success.

[Lee]

God I hope not. I don't want to pay $100 a month to be hip and receive DVDs by mail.

[Xaionik]

The day Apple buys Netflix, is the day I cancel my subscription.

Not only will they kill Netflix's mission on ubiquitous access, but it will overcharge the hell out of you ontop of making you use iTunes and Quicktime only.

The best course for Netflix is to push forward as its own entity. It has the momentum and ambition to become something much greater than just another side project for an overbearing corporation who has its attention elsewhere.

[RobCannon]

That would be a horrible day for Netflix. I would probably end up cancelling.

[chuck]

i agree with the folks who think it would be terrible - apple is far too controlling.

there's no way if apple was running the show that we would have netflix streaming on the xbox, ps3, blu-ray players, built in to TVs, etc etc.

with apple, it's either their way (they control the hardware AND software), or no way.

[Cfaulkingham]

Apple doesn't even need to buy Netflix to receive the benefit. They could just make a deal to put Netflix on the AppleTV and it would create sales for both companies.

Right now the best model out there is the Roku with Neflix/Amazon VOD. I think Apple is realizing they lost customers like me because of the storage issue. you can only download so much before you either have to remove it from iTunes or buy more storage.

[EG]

If they do... I'm outta here!

[mrkwst22]

Everyone (dittos) have already said it all:

Apple buying Netflix would NOT make either company better, and would hurt us, the consumers.

Apple and Netflix and TiVo should get in bed with each other, and see what pops up, so to speak.

[tsrblke]

thestreet.com is an unreliable site at best. One need only look at their founder to figure that out.
I'm getting tired of this "should X buy netflix" stuff actually. The truth is Apple won't buy netflix because it would sour their deals with studios on Download to own. I don't see them coming up with a subscription model either. (After all, they don't have one for music yet, why suddenly jump to one with video.)

[Tom]

I'd expect prices to rise immediately. Between iTunes and Netflix one could make an argument that such an acquistion would move Apple significantly towards anti-trust territory.

[Karl D.]

Like many others, I would consider cancelling my subscription if Apple bought them. It dosen't seem like things would be quite the same. I think the pricing would be quite different and not as value priced.

[Tim]

I like Apple products. But I don't want anyone to buy Netflix.

[Glenn]

No, because they'd end up charging twice what Netflix charges - just like their computers.

I don't want to pay more for the apple logo.

[Gran]

Everything that Apple does is closed
But it would always work like a charm!

[ScoobyG]

"But it would always work like a charm."

If iTunes is any indication, it would not.

iTunes is the most craptastic piece of software I have ever used. Slow, bloated, buggy, horrible user interface, and on and on.

Starting around 3.1, even my iPod touch software is showing some serious bugs. ("Updating library" message after a sync, and broken thumb scrolling in podcast page).

Apple buying Netflix? Thanks, but no thanks.

[Seth]

Apple doesn't want a business shipping DVDs around.

Netflix doesn't want to be a hardware business.

These stories are becoming silly.

[Steven]

I would definitely cancel my account. You know they'd do something stupid like change all streaming video to Quicktime and require iTunes to watch it. I do whatever I can to distance myself from the rabid pro-Apple hipster douchebags too.

[QP]

I love some of these responses.

"If Apple buys Netflix they will do everything in their power to make it fail! Der!"

Yeah, Apple has just been a major financial failure these past ten years, huh?

>>>abid pro-Apple hipster douchebags too.

Never understood the anti-Apple hostility at this level, either. This is just ugliness. Call a psychiatrist, Steven, You need major help.

[david]

These articles are reminding me of sports radio callers phoning in to ask if the host likes the possibility of the Cavs trading Lebron, Mo Williams & Shaq for Tim Duncan, Tony Parker & Richard Jefferson. Something that would only happen in fantasy league. This is fantasy business.

[Smy]

I think Apple should buy Blockbuster. =)

[Ritch]

I think Netflix should buy Apple :P

[Classicalvirtu]

No Way! I will not pay for every individual thing that I stream like apple tv makes you do. I love the netflix!

[Seth]

I think Reed Hastings should be President.

[Josh]

I think Seth needs a job... and I bet the comment has been forwarded around NetFlix...

Selling out would be a bad idea... I think they are aware of that.

[Tester]

While I doubt it would happen if it did I would cancel my membership in half a heartbeat.

@QP:

You appear to be a true Apple fanboy!

[J]

I think Apple would do a great job if they picked up Netflix. First, it would integrate with the iPhone and everything else. (Don't forget, iTunes and Safari are made for PC too.)
Also, for the first time, good interface design, technological innovation, and content would combine in so many incredible ways. Apple and Adobe are the dominant publishing platforms. Almost every typeface you have ever read was designed on a Mac. Most publishing and graphic design is done on a Mac. Most movies are now edited on a Mac. Etc. So the move from print and film to digital distribution would be smoother since all these entities are so familiar with both worlds. I could see a day where you could browse for digital books, movies, and many other entertainment or educational things on your Roku/AppleTV.