We’re hearing some rumblings and grumblings that Apple might start producing original content to go along with an updated version of its Apple TV streaming box, and do you know who isn’t worried about it? Netflix.
Reed Hastings, CEO of the giant streaming service, spoke to CNN to discuss his company’s new availability in Japan and its future plans to expand into all of Asia, and he could not have sounded less concerned when the interviewer asked about the rumors of the Cupertino company getting into content creation.
“You know, we’ve got so many great original shows out,” said Hastings. “And other people are doing shows, too; HBO’s doing shows, FX are doing shows, BBC. … So the fact that additional tech companies may be doing shows, that’s really not that big a deal in the total number of shows being produced around the world. Our focus is great shows, and we’re executing on that.”
Hastings can afford to be cavalier here because his company’s original programming is a big hit with viewers and critics alike. Its political drama House of Cards, which stars Kevin Spacey as a Machiavellian politician clawing his way to the U.S. Presidency, has scored two Golden Globes and a Primetime Emmy. Comic-book fans also got excited about its version of superhero Daredevil, which is returning for a second season and will introduce additional characters like The Punisher.
We’re expecting to hear more about the new Apple TV at next Tuesday’s event, which might also include news about the Apple Watch, the latest iteration of the iPhone, and the long-rumored iPad Pro.
What ultimately matters for Netflix is how good Apple’s programming is (if it even ends up happening) and whether it draws audiences away from its own offerings. But even that is unlikely, considering that the whole point of on-demand entertainment is that viewers can watch whatever they want, whenever they want to. This area has no time slots to fight over, or even advertising dollars, since they typically draw revenue through the licensing deals they make with studios and networks. Except for Hulu, of course, which shows you ads even if you’re paying for the service.
What’s up with that, anyway, Hulu?
Via: CNN
6 responses to “Apple-produced shows ‘not that big a deal,’ says Netflix head”
Confidence and Fear – a Ballmer tutorial.
Yeah. The true TV on demand market that Netflix invented and now dominates (driving a huge company like Blockbuster out of business in the process) is TOTALLY comparable to a legacy software company whose cash cow is a 30 year old operating system designed for desktop computers. Beating Microsoft, who is too bureaucratic and timid to so much as create a new OS (when Apple has used at least 3 different operating systems on the iPod alone), is TOTALLY the same as beating a leading new technology company. Except that … well Apple isn’t exactly BEATING Microsoft anyway. Windows still controls like 90% of PC market share and has almost 85% of sales of new PCs. And as much as you guys would like to take credit for it, Google and Android are actually the reasons why Microsoft can’t even PAY, literally BRIBE people to use their phones and tablets or develop for their mobile platform, not Apple. If it were not for Google and Android, the Samsung Galaxy would be running Windows 8, and everyone who doesn’t want to pay $600 for a mobile device would have $300 Nokia phones and $150 Acer Windows tablets.
Apple’s foray into producing content will at best be similar to their streaming music effort: they will be one player among many. And it may even be the disaster that Microsoft’s attempt to make movies and TV shows for their “XBox Network” was.
“Apple-produced shows ‘not that big a deal,’ says Netflix head”
Hmmm, wonder what else he •would• have said?
You guys are looking at it all wrong. You are acting as if folks are going to switch from Netflix to Apple the way that they would switch from Windows to a MacBook or from a Galaxy S4 to an iPhone. Guys, Netflix is a subscription streaming service. Let me put it another way: a subscription streaming service whose app is also available on the app store. So people aren’t going to stop watching Netflix and start watching whatever Apple produces. Instead, they are going to watch “House of Cards” on Netflix and when that is done they are going to watch Apple’s content, and they will do it on the same iPad or Apple TV. So what are they going to do, cancel the $10 a month that they are paying for Netflix and subscribe to Apple instead? Why? First off, for that to happen, Apple will need to offer as much FREE content as Netflix does: obtain the rights to THOUSANDS of movies and TV series. Second, even if Apple does, most people subscribe to multiple services anyway. So they will add Apple’s channel to Netflix and maybe drop Hulu or Amazon. That plus the fact that Apple’s channel may require Apple hardware to watch AT ALL (unlike Netflix which is cross platform) and will likely require Apple TV to watch on a TV screen, Netflix has nothing to worry about from Apple. Hulu (also cross platform) and Amazon are much bigger competitors. Google would be a bigger competitor too if they decided to weigh in because like Netflix and Hulu they also do not require ecosystem lock-in.
Isn’t that what Blackberry said about iPhone?
;)