Netflix is one of the largest streaming platforms out there. It now has a 221.64 million subscriber count. However, the platform has been showing signs of being wounded.
There have been acquisition talks, which are fueling a lot of hot discussions. But do you know which industry giant is not showing any hint of slowing down when it comes to growth? Apple!
The third quarter results for the fiscal year 2022 showed a record-breaking amount of profits. With such a profit amount, it is pretty natural for people to wonder who the tech giant will target now. During the earnings call, Tim Cook, CEO of Apple, gave a little hint regarding that.
In that call, Tim Cook stated that the tech giant would not rule out the chance to acquire other businesses in order to integrate with its thriving ecosystem.
The CEO also stated that the company is continuously surveying the market. However, Cook also stated the company would never “buy to buy.” Instead, Apple will make investments where it makes the most sense. And it will consider the long-term growth of the company.
That is where the limping condition of Netflix comes into the equation. With the recent acquisitions, many market analysts say that the tech giant could be eyeing the streaming giant.
The analysts are also sharing their thought on why Apple should jump into acquiring the struggling business and integrate it into their system.
All of this makes sense, especially when you consider the streaming push of Apple. Take Apple TV+, for example. It is a service that only features exclusive content.
Acquiring Netflix could be a way to introduce third-party shows and movies into the system. It could also be a way for the company to enhance the content library. The Netflix Originals will surely play a great role in this case.
That said, you might be wondering how Netflix is currently in a vulnerable position. Well, the streaming giant is facing a loss in terms of revenue for the first time in the decade. Several factors are playing a role here.
Some of those factors include password sharing, the pulling out of Russia, and expensive projects made by the service. Those projects are not yielding the expected amount of returns for the company.
Now, as the tech giant apparently has the highest quality content for the money, Apple is seemingly in the prime position to reinvigorate Netflix.
However, none of these is set on stones. Tim Cook is still playing coy about what people can expect from the company’s acquisitions. So, only time will confirm what is next for the tech giant.