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In a conference call after the release of the results, Apple CEO Tim Cook said his company's video service could coexist with Netflix and other competitors.
"There is a tremendous movement of the cable bundle over-the-top," Cook said during the call, referring to streaming cable services. "We believe that most users will get several superfluous products and we will do our best to convince them that the Apple TV + product should be part of it."
This is a new conciliation position with respect to existing services such as Netflix, Hulu and YouTube, with which Apple is now a partner and on which current service revenues are based. And for upcoming services, like the amazingly affordable Disney service that will be launched later this year.
Of course, Apple's goal is to replace as many services as possible and generate as much revenue as possible internally. But the video streaming market has been lagging a few years ago and is sorely lacking in content, especially with respect to some services, such as HBO and Netflix, known for their award-winning, high-quality content.
To close this gap, Apple plans to spend about $ 2 billion in content this year. But this figure is derisory compared to its rivals. For example, Netflix has spent $ 13 billion on content in 2018 and plans to spend $ 15 billion this year.
This differential may help explain Cook's tone: There is no way for Apple to beat Netflix in the short term, if ever.
Tagged Apple TV, Netflix
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