Could Apple TV be the next iPhone?

With traditional TV losing viewers to streaming services, the industry is still figuring out what its new economic model will look like. People love TV content, but they don't love the linear TV experience, where channels present programs only at particular times. However, internet or digital TV - which is on-demand, personalized, and available on any screen - is replacing linear TV. With the growth of digital TV content and even pictures got released through TV and personalised studio, opens a new era of growth of internet TV apps will generate more viewing and become more valuable. Now, you can watch first day first show on your TV, by just paying extra bucks. Since, consumers can watch content on demand, on any screen, and the experience is personalized to individual tastes.

 

The internet is getting faster and more reliable, while penetration of smart TVs and smart phones is also rising and the competition in the streaming market is heating up considerably after Disney announced plans to pull their content from Netflix and start their own streaming service next year. With the rapid Innovation, internet TV apps have frequent improvement updates and streaming is the primary source of UHD 4K video content. Apple has already committed $1 billion towards creating new shows and their largest acquisition was buying Beats for $3 billion in 2014. Why would they spend $75 billion to buy Netflix? 



The changes to the corporate tax code in US by president Trump administration, will provide companies with a one-time opportunity to bring back cash they have stored overseas without having to pay full taxes on it. Apple has an estimated $252 billion—about 90 percent of its cash According to Citi analysts, there is a 40% likelihood that Apple will acquire Netflix. Under the new taxing rules, the tech giant will be able to repatriate about $220 billion in cash to the US. It would reportedly take just one third of that sum to buy Netflix.

 

As per Jim Suva and Asiya Merchant, the acquisition would immediately make Apple the world’s leading internet television network with over 90 million members in 190 countries. The team at Netflix can help Apple revamp its streaming video product. Apple TV sales could be juiced by including free Netflix memberships for six to 12 months with each new purchase.

 

The fact is, Apple has learned that film and television are very different industries than music. Its video content offerings have not caught up to those offered by competitors Netflix and Amazon.com Inc. Netflix is spending billions per year to acquire or create new content. Even though, Netflix is more than $20 billion in the red and bleeding cash, Investors are said to be relaxed about the large debt since Netflix continues to build on subscribers; currently 104 million subscribers use the streaming service. The plan to offer 50 per cent original content in 2018.

 

Apple. is worth almost $900 billion. It is on its way to becoming the first trillion-dollar company.If at all the deal happens, Apple bringing Netflix in-house would certainly transform Apple into an instant player in the media space.

Tags: Apple TV, iPhone, internet TV apps, digital tv, president Trump administration, apple, iphone, Amazon, Netflix, varindia, apple tv next iphone

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