How downloading and streaming complete the viewing experience
To be fair, Apple Inc. (NASDAQ:AAPL) plans to compete directly with the likes of Pandora and Spotify. If the Mac maker is willing to try Internet radio, there’s no reason to believe it won’t also try to offer its own streaming alternative, especially if the delivery mechanism is via an integrated large-screen Apple Inc. (NASDAQ:AAPL) TV.
If it doesn’t happen, it’ll be because there’s a natural synergy between video downloading and streaming that doesn’t exist in the audio side of the business.
Consider my own experience. After watching the 2005 reboot of U.K. science fiction series Doctor Who, and each of the succeeding series available on Netflix, I subscribed to series 7 of the show via iTunes. I’ll purchase the back half of the current run when it returns to BBC America in the spring. I’m also subscribed to The Walking Dead and am considering adding a few other favorites.
My experience isn’t as uncommon as you might think. Netflix Chief Content Officer Ted Sarandos has said that airing prior-season episodes of AMC Networks Inc (NASDAQ:AMCX) favorites Mad Men and Breaking Bad has brought in 1 million or more viewers to its cable programs.
Too bold a claim, you say? Possibly. Either way, we know that Breaking Bad and The Walking Dead drew in more viewers during a DISH Network Corp. (NASDAQ:DISH) blackout. Digital distribution filled the gap DISH left, and then some.
Finally, imagine what happens if Tullo is proven right. Apple Inc. (NASDAQ:AAPL)’s Cook would not only be committing to billions in new capital outlays but also turning several partners into competitors — namely, the big networks behind Hulu Plus.
I think Cook is smarter than that. But I also want to know what you think. Do you believe Apple Inc. (NASDAQ:AAPL) will create a distinct streaming service? If so, when? Please weigh in using the comments box below.
Learn more about Netflix
The precipitous drop in Netflix shares since the summer of 2011 has caused many shareholders to lose hope. While the company’s first-mover status is often viewed as a competitive advantage, the opportunities in streaming media have brought some new, deep-pocketed rivals looking for their piece of a growing pie. Can Netflix fend off this burgeoning competition, and will its international growth aspirations really pay off? These are must-know issues for investors, which is why we’ve released a brand-new premium report on Netflix. Inside, you’ll learn about the key opportunities and risks facing the company, as well as reasons to buy or sell the stock. We’re also offering a full year of updates as key news hits, so make sure to click here and claim a copy today.
The article Why Apple Won’t Disrupt Netflix originally appeared on Fool.com.
Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Apple, Netflix, Time Warner, and Walt Disney at the time of publication. He also had a long-term call options position in Netflix. Check out Tim’s web home and portfolio holdings or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool owns shares of Netflix, Walt Disney, Apple, and Amazon.com. Motley Fool newsletter services recommend Netflix, AMC Networks, Apple, Walt Disney, and Amazon.com. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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