The Upgrade
8 Reasons Why Apple Won’t Buy Netflix
It has the cash, and Netflix has the audience. But the idea is still rotten.
Did you catch the latest episode of Analysts Say the Craziest Stuff? It’s a one-off where JPMorgan analyst Samik Chatterjee spins a fantastic tale about how Apple could buy Netflix to instantly become a content leader.
The premise is based on Chatterjee’s belief that Netflix’s existing leadership position in engagement and original content could vault Apple to the top of the streaming heap.
It’s a compelling idea at first blush, and in fairness to Chatterjee, it’s just conjecture — there isn’t even the whiff of a legit rumor here. Still, there’s no reason to believe it would happen anytime soon. Here are eight reasons why.
Episode 1: The Young and the Restless
The streaming industry is experiencing unprecedented growth, with many new players entering the field. Apple, which is developing its own streaming content, is entering crowded turf with a significantly lower spend than Netflix ($1 billion versus $8 billion), but it’s simply too early for such a major consolidation.
A look at the early days of the film industry offers some perspective. At the turn of…
