Remember Tears for Fears and Everybody Wants To Rule The World? Current leaders of Russia, China, and the U.S. notwithstanding, most pragmatists recognize that completely ruling anything is a major challenge, and simple prospering as a giant alongside a community of giants is a good objective.
Then why does anyone think Apple wants to dominate TV?
Here’s Adam Esptein’s headline:
Trying to dominate TV is like nothing Apple has ever done before
Apple is trying to dominate TV? No.
Apple wants to make money and grow the customer base and that requires investments in various strategies, of which video content is but one part of the growing pie.
It’s a big deal when any major global corporation gets into the streaming game—Disney, WarnerMedia, and NBCUniversal are all about to—but an even bigger deal when that corporation’s ecosystem already boasts over 1 billion customers.
That says something. The video content business, streaming video, is crowded already, and some of the players are huge.
Who will win?
Who is winning?
What, precisely, is Apple going for other than another way to market devices and diversify revenue streams? Will people care? Can Apple become a true player in Hollywood and cut into Netflix’s streaming dominance?
Streaming is just one slice of the content distribution pie, but it is growing, and it has some very large players that dwarf Netflix. Do not expect Netflix to stay on top forever. The field is crowded now and about to get more crowded.
What is Apple doing? Where is Apple TV+ relative to Netflix, Disney, et al?
Apple appears to be competing most directly with HBO and its “premium TV” mantle (as opposed to Netflix and its “something for everyone” model).
Remember, not all business models are the same. Netflix lives or dies on streaming content. Apple does not. Yet, Apple has enough clout and a large enough customer base that it can be a major player and end up doing better than Netflix financially but isn’t dependent upon a profitable streaming business.
It took HBO more than a decade of building up goodwill before it even dared try something like Game of Thrones. Apple thinks its deep pockets and sheer force of will are enough to launch a similarly ambitious series immediately.
Apple has deep pockets and no history of wanting to rule the world. Ruling the premium end of the product space is a different issue. That’s where Apple plays, so it pays not to compare Netflix to Apple. Disney has the capability to unseat Netflix, but in the end their entire content industry– broadcast, print, media, and streaming– is becoming ever more fragmented.
Consolidatiion is an element of new businesses, but nobody will rule the world for years.