Will Netflix Be Apple's Next Catch

As attractive as it might sound, fate is blurry for Apple to acquire Netflix

Apple Inc. has come up with the Apple TV which was considered to be the future of conventional television. The technology had the ability to revolutionize the industry. Recently, the company also planned to come up with a cable streaming package that encompassed 14 channels which would be priced lesser than other conventional services. However, the company did not succeed in maintaining healthy relationships with the streaming services because of which the company decided to abandon the service in December. Now the thing to ponder on is that the company has a cash reserve of $200 billion, so with this money should they opt for high priced proposal or acquire the streaming giant, Netflix Inc.?

For the very first time over the past couple of years, the tech behemoth considers itself in a crucial situation. In the start of 2015, Apple stock were quite lucrative but with time they dropped down to the level they were a year earlier. The market for tablets and smartphones is extremely saturated which does not have the potential to churn in revenues considering previous growth.  Other than that, the company wanted to push its wearable tech, Apple Watch but it wasn’t quite successful and the streaming service for Apple TV got abandoned.

During an interview for Bloomberg, Mr. Daniel Ives, the managing director at FBR Capital Markets claimed that the tech giant has not really made any high profile acquisition to date. The company has embraced a “make or break” situation in FY16 and it should not rely on iPhone 7 to be a game changer and churn in massive sales unless it comes up with an extremely futuristic smartphone.

The company at this point is interested in original content programming; this is exactly what Netflix is popular for through the renowned House of Cards series. So to minimize the hefty expense of coming up with its own original content programming, the tech giant can simply acquire Netflix and make use of the company’s expertise in this domain.

Netflix now seems to be an extremely lucrative company in terms of an acquisition. However, the issue is that the company’s paid content principle is actually against the iPhone maker’s policy to beam out an affordable cable streaming service for $40 to customers.

Moreover, Netflix might really not be interested in this acquisition since it is doing quite well and there is room for further growth in the times to come due to its immense popularity in the world of original content.