This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Does Apple Really Want To Be Like Netflix?

Stocks in this article: AAPL NFLX

NEW YORK ( TheStreet) -- Apple (AAPL) absolutely has to have something up its sleeve. The few things we have been reading about the forthcoming iTV (or whatever they will call it), as they pertain to content, simply cannot be true. If they are, I am even more long-term bearish AAPL than I thought I was.

For a while now, we have been hearing that Apple is running into myriad roadblocks as it attempts to snag premium content from Hollywood's old guard.

This should come as no surprise. While Apple strong-armed the music industry into doing exactly what it wanted, how it wanted it done and when it wanted it to happen, that act will not fly with the TV and movie guys. Apple pulls sway with wireless carriers to subsidize the living heck out of iPhone because it operates from a position of massive strength in that relationship. It might even be able to take cable and satellite companies to the cleaners to subsidize iTV. When you look to the owners of premium content, however, Apple is really not all that different than Netflix (NFLX).

Follow TheStreet on Twitter and become a fan on Facebook.

Certainly, Apple is 500 times the company Netflix is. It has loads more money. From every angle, Apple reigns superior over Netflix. Then, why does it appear that Apple is looking to mold iTV from what basically amounts to a Netflix model?

There has to be more, much more, to the story. Is Apple really going to enter a bidding war with the likes of Rupert Murdoch's Sky Sports and Al Jazeera to secure English broadcast rights to English Premier League soccer? And if Apple is indeed talking to Epix about content it's sane and logical to imagine it's talking to other big-time content owners as well.

If this is the case, it's a good thing Apple has billions upon billions of dollars at its disposal. The level of spending Apple will have to attain to cull together a robust offering will make the several billion Netflix is on the hook for look like the car payment on a new Dodge Dart. In other words, Apple will do what Netflix needs to do, but does not have the cash to do to be successful. But, that's a surface scratch view that ignores context.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,890.30 +85.50 0.48%
S&P 500 2,072.51 +1.86 0.09%
NASDAQ 4,773.9560 +8.5760 0.18%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs