(Each month we weigh the pros and cons of a particular potential merger for Apple. Please note the "fantasy" part of this speculation: Many times the mergers mentioned couldn't or wouldn't be realistically possible. But put all that aside and enjoy this month's edition of Fantasy Merger.)
Earlier this month Netflix brought its movie streaming service to the Mac, with the help of Microsoft's Silverlight Technology. This service allows mac(and pc)users to instantly stream thousands of movies, making Netflix more of a direct competitor to Apple's iTunes than in the past. But that alone doesn't make Netflix the subject of this month's fantasy merger. With Netflix, Apple would gain an instant subscriber base. Rather than trying to build a base on top of their current rental and purchase options, Apple would have a sandbox in which to experiment with the subscriber model.
Apple could also vastly increase it's movie library overnight. Movie studios have made thousands of movies available via Netflix's streaming service that are not available on iTunes (at least not for rental).
Of course, it would also mean the quick demise of the physical dvd portion of the Netflix business. Apple would move quickly to get Netflix users to switch to digital distribution, while selling off the customer base who couldn't or didn't want to switch, to someone like Blockbuster.
What do you think? Should Apple pickup Netflix, for what amounts to a few coins in their cash-laden sofa?
No comments:
Post a Comment