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Apple Inc (AAPL) Treads Softly to Avoid Core Rivalry With Netflix and Amazon

Apple inc (NASDAQ:AAPL) Apple TV

Apple Inc might be late to the video streaming party, but the tech giant is working hard to ensure that its streaming service kicks off the right foot. The firm wants to have a good dose of content deals with broadcast networks in a move that might be a win-win situation for the Apple TV service and broadcast networks. Apple’s move to enter the live TV streaming space contrasts sharply with rumors that the firm might challenge the likes of Netflix, Inc. and Amazon.com Inc, . in streaming movies.

Apple inc (NASDAQ:AAPL)

CBS President and CEO, Les Moonves has revealed that a deal between his firm and Apple for a live TV streaming service is likely sometime down the road. Apple is usually tight-lipped about talks about potential deals, but it doesn’t take much thinking to deduce that Apple needs to make serious content deals if its wants its live TV streaming service to create and succeed in a new niche market.

Apple TV’s content deals are almost here

Apple hasn’t officially confirmed or denied its plan for a streaming service but Moonves revealed to Bloomberg TV that the firm is serious about live TV streaming. Moonves was quoted saying, “Apple is having conversations with everyone about doing their own streaming services”. The grapevine has it that Tim Cook wants to the live TV streaming service to start at about $40 – this is certainty more than Netflix’s price of $10 per month.

Moonves also confirmed rumors that Apple is planning to make deals with major broadcast networks such as CBS, NBC, ABC, and Fox. In his words, “We have had those conversations, as have the other networks. Do I think something will happen? Probably, but I do not know when.”

Back in May, MacRumors reported “Disney and CBS will likely be among the first networks to reach a deal with Apple for its à-la-carte streaming TV service… Cable channels such as Discovery and ESPN are also expected to be included in the subscription-based service, which is rumored to include a skinny bundle of around 25 channels.”

Apple is better off ignoring movies

Apple’s plan to start streaming TV might allow the service to survive in a space that is already being controlled by Netflix, Amazon, and Hulu. To start with, Netflix and Amazon Prime have a strong foothold in the TV streaming space – and are likely not ready to lose ground to Apple. By the time Apple starts entering the movie streaming market that Netflix already dominates, it would have already built strong brand recognition for its Apple TV service.

More so, Apple might have a smoother ride in making content deals at a time when Netflix is already stepping on toes in Hollywood. Apple’s plan to tread softly to avoid a core rivalry with Netflix and Amazon is a smart move. Amazon is already on the defensive as its stops selling Apple TV Set top boxes in its stores. .Apple TV is still a fledging product and service for the tech giant firm wants to nurture it through its growth stage.

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Victor Alagbe is a seasoned business and finance writer with a specialty in writing about how to invest for the long-term in healthcare, pharmacology, energy and tech stocks. His long-term focus is on stocks that provide a nice mix of growth and income. For the short term, he passionately writes about trading stock options for the excitement and leverage that stock options offer.

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