Analyst Dan Ives of Wedbush Securities, which has an outperformance rating on Apple stock, said today he believes Apple’s “biggest strategic mistake” was not acquired Netflix years ago.
Ives thinks Apple still doesn’t have a huge stake in the streaming video industry and is behind Netflix, Amazon, and Disney. Ives says it’s not just a strategic mistake of Tim Cook, but also of Steve Jobs, when he was CEO of Apple.
In an interview for Yahoo finance, Dan Ives has said Apple would be in a better position in the current streaming wars if he bought Netflix.
“The biggest strategic mistake, in my opinion, of Jobs and Cook over the past 10 to 12 years, is not to acquire Netflix several years ago.”
Netflix has 203 million users worldwide, while Disney + has reached 94.9 million subscribers more than a year after launching last November. Apple, on the other hand, does not publish subscriber numbers for TV +, and the relative lack of content, more than a year after the service launched, is another issue.
Ives thinks that at least Apple should buy a studio. He said Apple TV + ‘s relatively thin content catalog was akin to owning a mansion, but it didn’t have much to provide.
“We’ve been talking about an MGM, a Lionsgate, an A24, otherwise they’re going to continue to be kind of on the outside looking inside,” Ives said. “And that’s why I think it’s something they’re going to be forced into… because it’s all about content.”
Dan Ives is not alone. The Netflix co-founder said last week that Apple TV + had “no excuse” to lag behind its competition. Randolph criticized Apple by suggesting that the company should invest in more reasons to get people to pay for Apple TV + subscriptions rather than giving “freebies.”
The report mentions that 62% of Apple TV + subscribers are on a free trial period and at least 29% of those users have no intention of paying for a subscription once the free trial expires, citing a survey .
Also today, Apple hosted a shareholders meeting where Tim Cook spoke about COVID-19, App Store regulations, challenges ahead in 2021, and Apple TV +. He said:
From the very beginning, our approach to Apple TV + has been to tell stories that matter. We see streaming as an arena with room for multiple players. We want to stand out by delivering high quality content that shines a light on the humanity we have in common.
I think you can see the strong response to this in different ways, whether it’s the amazing word of mouth that is spreading for shows like Ted lasso, or the remarkable series of over 240 nominations.
In fact, “The Morning Show,” “Ted Lasso,” and “For All Mankind” captured public attention, but none of them became a cultural force like Netflix’s “The Queen’s Gambit” or “ Disney’s The Mandalorian ”.
For 2021, Apple has two seasons to release, new movies, documentaries, and TV shows. “For All Mankind” just aired the first episode of season two, and the sequence for “The Morning Show” arrives later this year. It is currently expected for summer 2021 with the second season of “The Morning Show”.
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