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 (Fantasy Merger is a monthly feature looking at what could happen if Apple decided to merge with other companies. We have no inside knowledge that any mergers are imminent. And as you'll see, most are quite far-fetched anyhow...)Back in the November edition of Fantasy Merger, I told you all about the pros and cons of Apple merging with Netflix. So this month, let's consider Netflix's bitter rival, Blockbuster. First, all of the pros (and cons) of the Netflix post are true for Blockbuster as well: PROS Established monthly subscription base Elimination of disc rentals, Accelerated growth of digital downloads CONS: Apple doesn't want to send anyone a disc. Ever. Do the models really fit? Of course the added question mark with Blockbuster is its brick and mortar stores. Thousands of locations around the country. Could Apple transform the stores into a sort of Apple outlet, maybe focusing more on iPods and iPhones than computers. And ponder this for a moment: All of those storefronts could make a great infrastructure for a competing cell phone provider. With Sprint possibly on the ropes, there could be a great opportunity for Apple to enter the game the second their contract is up with AT&T. (Maybe Sprint will be back for the Feb. Fantasy Merger...) Still, as with most Fantasy Merger entries, This one is really unlikely.
 (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?
 (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.)We've tackled some of the biggest potential Apple fantasy mergers in previous months, including Adobe, Google, Comcast, and Nintendo. This month we're thinking somewhat smaller: iRobot. Clearly, Apple is the leader in digital downloads, and now with the iPhone and it's apps, you can start controlling your life from your phone: iTunes remote, VNC into other computers, email, etc. But what about the physical world around you? What if, beyond supporting third party software, Apple got into the home automation business? Or more specifically, the home automation hardware business? Yes, the Jetsons future we were all promised, would finally be here. iRobot has done the hard work of designing and marketing the most successful home "robot" to date, the Roomba. Additionally, they've expanded to other consumer models for gutter cleaning and pool cleaning. If these technologies will ever truly take off (which is arguable) it will take the marketing sizzle of an established, stylish, company. Enter Apple. Using wifi networks, Apple could coordinate home automation for TVs, kitchen appliances, heating, cooling and more. And yes, it would seem like this merger would be far from Apple's core values. At the same time, if home automation does finally catch on, doesn't one company, offering a total end-to-end solution, and already known for its ease of use, stand the best chance of making it a reality?
(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.)Last month, we talked about the wonders that would come from an Apple/Nintendo merger. This month, we dare you to dream of iTunes libraries searchable by lyrics, AdWord supported iWeb documents, and web-based OS X. Yes friends, imagine if you will, an Apple/Google merger. Clearly this month's merger leans more toward the fantasy side than others. Rather than the advantages for each company, the real question is, what would happen to the rest of the tech industry? Would the Dept. of Justice allow such a merger between an internet powerhouse, and a hardware manufacturer? Could the two companies combined maintain Apple's legendary secrecy while also maintaining Google's "do no evil" philosophy? And what would happen to Microsoft? Beyond spending billions of dollars to oppose the merger, what would become of them in a world in which the "most advanced" operating system would be available to all? Of course both companies are doing fine on their own thanks, and would have little interest in the other beyond their working partnership now. Still, once a month, we stop to wonder, what if...
(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.)Apple has been on a tear conquering the worlds of portable music, cell phones, and computers. There are two areas though, where Apple continues to meet resistance: The settop box (Apple TV) and gaming. This month's fantasy merger would solve both of these problems overnight: Merge/Buy Nintendo. The Wii has been a success in large part due to the (here it comes) "think different" approach they've taken to game control. From the outside, it seems like there would be several workplace culture similarities between the two companies, more than say Apple and Sony. Apple would immediately have a gaming hit on its hands, and a device in millions of homes (millions more than Apple TV) in which to stream TV, movies, and music. Will it happen? As if with all these fantasy mergers, probably not. But not letting little things like company valuations, international ownership issues, and ego clashes get in the way, it looks like a great match.
(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.)
For this month's edition of Apple fantasy merger, I went with an old standby: Adobe. Why? well, because frankly time may be running out on this merger rumor. There was a time when controlling Photoshop may have seen like a golden ticket to allow Apple to grow an even larger share of the creative community. However, with the release of Aperture, and most recently the 2.1 Aperture update supporting 3rd party plugins, the feature gap between the two programs continues to shrink. However, there is one other Adobe property that might just make it all worth it for Apple: Flash. Flash has been widely accepted as the standard for internet media. Sure QuickTime (and Windows Media) provides a far superior picture, Flash, thanks to it's near-100% install base has become the streaming media format of choice for Youtube, Metacafe, and just about every other online video site. And if you follow iPhone news, it would be hard to miss the back and forth struggle of bringing Flash to the phone. Some people think it's the missing piece to completing the feature set of the phone, while others see it as a nuisance. Yes, the code can seem bloated. But imagine what Apple could do under the hood... While all web video is slowly migrating to the h.264 open standard, think of the interactive possibilities if Flash and QuickTime became one. You could create interactive slide shows with iPhoto, giving people the ability to add their own features. You could make the full feature set of Photoshop available online for manipulation and adjustment of the pictures. As we move past disc-based media, the winner in online content might be the first format that allows for stunning playback and ease of purchase, as iTunes and QuickTime already do, coupled with the authoring tools, and universal install base Flash provides. There would still be a big "get" for Apple in the creative market as well. While they would acquire Premiere, a Final Cut Pro competitor, they would also get After Effect, which is far and away the most popular/most used effects software for video production. Apple could make even greater in-roads in the consumer market with the Flash/QuickTime combination, while simultaneously bringing another important product into their pro software portfolio. What do you think? Let us know in the comments,
(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.)
With Apple's revamped Apple TV, or more specifically, the "Take Two" software enhancements, critics seem to universally agree that Apple TV is better than it was. Many though, lament that there's still no way to record shows to the box, and that it cannot serve as a cable box replacement. Another box to have to hook up, and one without a dvd player is a barrier for many people.
It has also become clear in the past few weeks that Apple does not offer nearly the movie selection for rent as other outlets. Take Comcast's OnDemand movie offerings, for example.
Apple's plans seems set on a world in which the concept of networks disappear, and people are free to watch whatever they want to, whenever they like. Tivo has been but a small taste of Apple's ultimate network-free model.
Of course, there are a few problems with that future. For one, the cable companies have been doing just fine providing traditional network television. And, for those who enjoy live programming like sports and news, the cable connection is key to getting those programs as they happen.
But now, go down the rabbit hole.. to a world in which Comcast and Apple are one. For the sake of this discussion, we'll assume Apple was able to outright purchase Comcast (not financially possible, but that's why we call it fantasy merger!). Now imagine that all those Comcast boxes in the universe are replaced by Apple TVs, or given Apple TV features. The resulting service would create a seamless experience: whether you want to watch podcasts, rent movies, or buy TV shows, it would all be handled by one device. And with Apple as an internet provider to millions, the possibilities to enhance/fix .mac become incredible. Personal photo albums from iPhoto/.mac could be made easily available to family members all over the country. And because Apple would control "the pipe" to the home, they would have tremendous leverage in dealing with the major networks, maybe dismantling the whole concept of networks, for better or worse, in the process.
What do you think? What other pros and cons would come from this merger?
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