This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

If Apple Needs Netflix, Tim Cook Needs a Clue

NEW YORK (TheStreet) -- Either The Wall Street Journal stinks or there's veracity to their reporting that Apple (AAPL - Get Report) is in talks with Comcast (CMSA) to do something that involves "content."

TheStreet's Richard Saintvilus lays out what's apparently happening between Apple and Comcast in our number one article from Wednesday. Saintvilus also argues -- with the most inanity I have seen from him to date -- that Apple should buy Netflix (NFLX - Get Report).

Here's another link to his article. If you can figure out his rationale for an Apple takeover of Netflix, please clue me in because I just don't get it.

But there's something that would be far more troublesome than The Saint's apparent cluelessness here. Could Tim Cook be dense enough to believe that Apple needs a relationship with Comcast or lame access to some mysterious content to maintain and further its dominance?

You can say it every which way to the weekend, but it doesn't get through people's heads ...

There's no good reason for Apple to get involved in the content game. It's complicated. It's expensive. It's a pain in the butt. And there's not enough of a payoff, relative to what Apple's used to, to make all the time and aggravation worthwhile.

If Apple makes a serious move into content -- beyond what it already does in the iTunes and App Stores -- there must be something seriously wrong with the company's core hardware business.

Hardware -- Apple's bread and butter. Apple's software and services ecosystem certainly contributes to hardware sales, however the hardware sells itself. The beauty, the utility, the superiority of iPhone, iPad and Mac.

While Apple owns some key components of its ecosystem, it doesn't need to own everything.

Why own Netflix's bungled and debt-ridden business or dive too deep into Pandora's (P) or pay Comcast a king's ransom for "preferential access" (to and for exactly what I don't know!) when you assume minimal risk doing what you're doing now?

With otherworldly success.

Why ... that's the question. It's also the concern.

If Apple throws itself into a mix that includes loads of dime a dozen characters, there must be trouble. As in nothing compelling in the hardware pipeline. Because, again, why else would Apple feel compelled to bother with that noise? 

It has already injected itself into the streaming radio mess. If it feels the need to do likewise with streaming video, I'm going to worry and wonder about Tim Cook's ability to maintain and nurture Apple's greatness.

I think Tim Cook understands this. I don't think he's set to do anything radical with content, regardless of what The Wall Street Journal (or The Saint) says. But I can't write these guys (The Journal or The Saint) off. If there's smoke to their fire, I could wind up back on the fire Tim Cook bandwagon faster than Reed Hastings can explain away off-balance sheet obligations.

--Written by Rocco Pendola in Santa Monica, Calif.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks. Rocco Pendola is a columnist for TheStreet. Whenever possible, Pendola uses hockey, Springsteen or Southern California references in his work. He lives in Santa Monica.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG
AAPL $126.37 2.53%
NFLX $422.57 1.88%
FB $83.20 -0.13%
GOOG $552.03 0.67%
TSLA $190.57 3.01%

Markets

DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

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