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Credit: Paul Morris / Bloomberg
Apple is expected to largely enter the highly competitive video streaming market at a Monday event, but Wall Street could react to this news by yawning.
The announcement (which will detail a plan on which Apple has left hints for weeks) should not change the situation for Apple or its competitors, according to analysts who said it would be difficult for Apple to match the rivals of the streaming video the extent of the original content that it offers. And since it will only represent a tiny fraction of Apple's own business, the event may not have much impact on its share price.
"In order to move the needle with services such as video, Apple would need to add a company several times larger than Netflix," wrote Raymond James analyst Chris Caso on Tuesday. March 14th. "The iPhone is so big that it's hard for anyone to have an impact."
Bloomberg Intelligence analyst John Butler said Apple's decision would not pose any short-term risk for the larger streaming companies.
"Apple is one of the largest companies in the world so its entry can not be ignored, but it is making its way into the streaming market rather than buying it through It will therefore take a few more years for it to develop real scale, "he said in a telephone interview. "Over time, this could pose a bigger threat to Netflix and Amazon, but an immediate threat seems unlikely."
Apple and Netflix shares both rose sharply in 2019. Apple's shares rose 23% this year, while Netflix rose by more than 35%, although they remain below the record high of 'last year.
Roku Inc., which provides a platform for various streaming services, is a company that could benefit from Apple's entry into the industry. Needham analyst, Laura Martin, recently named Roku as her first choice for 2019, especially because she expects Apple to add new streaming TV services in Roku ", as well as the conditions for revenue sharing, in order to make its subscription services available to all customers.
-Bloomberg News
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