Archive for July 3rd, 2012

July 3, 2012

Does Apple want to dominate media streaming? Or just take a cut?

Two news stories recently may add up to an answer to this question.

  1. Netflix took half of Apple’s share of the streaming media market since it began streaming movies in 2010.
  2. Netflix and Apple signed a deal toallow Apple TV users to sign up forNetflix within the ATV interface. 

Apple continues to dominate music downloads, and its video download business continues to grow though not as rapidly as Netflix movie/TV show download service. If Apple wanted to protect its media download business from inroads, why make it easier for Netflix to do business?

Tim Cook recently said that Apple doesn’t need to own content. These actions seem to confirm that. That’s not to say Apple doesn’t care about streaming revenues, rather they would be just as happy to get revenues without having to stream.

Watch for Apple to sign more deals like this, perhaps charging “rent” to have an entry point to streaming prominently featured, or perhaps even present anywhere within the Apple TV interface.