Increasing interdependence between consumer-focused electronics companies and Internet-based entertainment enterprises manifests again, as a movie and TV show streaming service provider is said to invade the then-pricey and premature, now-refurbished capability: Netflix in Apple TV.
Not that the Netflix in Apple TV entry would be surprising: the iPod Touch, iPhone and the recent innovation iPad already allows for the streaming service in a separate subscription package.
However, this time, instead of view-all-you-cans at existing $8.99 a month rates, avid TV and movie fans would have to shell out a cent off a dollar to see an episode in the Netflix in Apple TV new set up.
That’s 99 cents for two days if the Netflix in Apple TV arrangement were to push through – which could be a far cry from the value-for-viewing money proposition of the fixed monthly payment scheme from the content-for-rent company. The same concern applies to the rapidly growing a-dollar-a-day revenue stream for the trendy tech brand, possibly reducing its income from the said source.
Los Angeles, California-located complete-line investment bank/brokerage firm Wedbush Morgan Securities in-house analyst Michael Pachter thinks that the Netflix in Apple TV undertaking could mean that the technological innovator is eyeing catalog-formatted TV show content. This is not the case for the pay-per-view kiosk setting.
Meanwhile, there is even a possibility that the catalog change looked into by the IT trendsetter, which would mean programs will be offered in episodes rather than as stand-alone shows, could be critical to the introduction of Netflix in Apple TV .This, says New York-based hypergrowth company-focused financial firm Merriman Curhan Ford & Co.-employed analyst EricWold, depends on whether the hand-picked bundles would deliver a challenge against the online DVD rental outfit’s offerings.
In spite of the risk of internal competition, and even market cannibalism, another analyst from the same investment banking/brokerage/financial research arena, Ralph Schackart, this time from Chicago-based William Blair & Company, LLC, asserts that the Netflix in Apple TV venture could potentially save the flat-rate subscription firm from falling into the profitability trap suffered by national movie rental stores such as Hollywood video, Movie Gallery, and even Blockbuster, which felt the impact at a lesser degree.
This is primarily due to Schackart’s insight that margins are far better in the digital realm rather than in the traditional trade. This Netflix in Apple TV will not only allow Apple to migrate into more episode-oriented content. The Internet-based studio will also be hugely benefited by capitalizing on the more lucrative 99-cent pricing, aiming to set an 80% share of the said scenario.
The Netflix in Apple TV addition will formally be declared only in the much-awaited San Francisco-set September 1 press party, in time with the launching of the cheaper and face-lifted gadget.
