According to Wedbush Securities analyst, Daniel Ives, the “biggest” mistake Apple has made over the past decade or so, was not acquiring streaming giant Netflix.
“The biggest strategic mistake, in my opinion, from Jobs and Cook over the last 10 to 12 years, is not acquiring Netflix a number of years ago,” said Ives, in an interview with Yahoo Finance Live. The analyst was referred to the timeframe from late Apple co-founder Steve Jobs to CEO Tim Cook. Other analysts over the years have similarly pushed Apple to buy Netflix.
The so-called mistake, according to Ives, has left Apple to go at building up its Apple TV+ streaming service alone, in what looks to be a huge task against the likes of Disney+, Netflix and Amazon Prime Video.
“We’ve talked about an MGM, a Lionsgate, an A24, otherwise they’re going to continue to sort of be on the outside looking in,” Ives continued. “And that’s why I think this is something they’re going to be forced into…because it’s all about content.”
Ives says Apple TV+ has a catalogue that is too small, and used the comparison of owning a mansion, but not having anything to furnish it with.
“That’s the problem when it comes to this arms race we’re seeing especially with Disney and of course Netflix at top of the heap,” said Ives.
Despite the shortcoming, Ives is still bullish on Apple, as he believes the company will sell 240 to 250 million iPhones in 2021, which could push its valuation to $3 trillion by the end of the year.
Apple TV+ does have some great hits such as The Morning Show and Ted Lasso. But there’s still a long way to go before Apple TV+ has an established library, when compared to the likes of Disney+, which added Star today, nearly doubling its content in a single day.