A particular analyst known as Dan Ives coming from the Wedbush Securities, who reportedly has an outperforming rating on the Apple stock, noted that he believes the company's biggest "strategic" mistake ever was not actually acquiring Netflix a couple of years ago. Ives reportedly believes that Apple still doesn't really have a huge stake in the whole streaming video industry in comparison with Amazon, Netflix, and Disney.
Apple TV+ compared to Netflix and Disney+
Ives also noted that this strategic mistake wasn't just made by Tim Cook but also reportedly by Steve Jobs, when he was still Apple's CEO. In a recent interview with Yahoo Finance, Ives noted that Apple could have been in a better position if the company had just bought Netflix back then.
Netflix reportedly has 203 million global users while the newer Disney+ has reportedly hit 94.9 million subscribers just over a year after it had launched last November. Apple, hadn't really released any particular type of subscriber number for the Apple TV+. According to the article by 9to5mac, the lack of content as well as over a year after the service's launch is said to be another problem.
Netflix co-founder says 'no excuse'
Ives noted that at least, Apple should still buy a studio. He noted that Apple TV+'s quite slim content category is pretty akin to owning a mansion without even having enough furniture. He then talked about MGM, A24, Lionsgate, or others, otherwise, they will then have to continue to sort of be looking from the outside. Ives then noted that this is why he thinks that this is something that they are going to be forced into doing since it's still all about context.
Dan Ives is reportedly not alone, even the Netflix co-founder noted last week that Apple TV+ actually has "no excuse" for it to lag way behind its competitors. Randolph also criticized Apple by actually suggesting that the company invest in even more reasons to get its users to actually pay for the Apple TV+ subscription instead of it being offered as a giveaway.
62% of Apple TV+ subscribers are on free trial
The report also mentions that around 62% of the known Apple TV+ subscribers are actually just on the free trial period and that at least about 29% of those users actually have no plans for it to pay for a subscription once the said free trial expires. Apple just noted in its shareholders meeting event along where their CEO Tim Cook notably talked about the said COVID-19, App Store regulation, as well as new challenges ahead this coming 2021, and the Apple TV+.
He then noted that the company's approach towards Apple TV+ from the very start has actually been on telling stories that would matter. He then noted that they see streaming as a particular arena with more room for several players and that they want to stand apart by completely lifting up their high quality content that actually spotlights the humanity that they hold in common.
This article is owned by Tech Times
Written by Urian Buenconsejo