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Is this Apple CEO Tim Cook’s ‘biggest mistake’ so far?

Apple’s streaming service may not feature Netflix and Hulu content whereas HBO’s participation seems dicey

Tim Cook may have made this biggest mistake for Apple (Source: Reuters)
Tim Cook may have made this biggest mistake for Apple (Source: Reuters)

Apple acquiring Netflix has been a hot topic in the technology industry for years but it did never really happen. And, now, one strategist believes it is the “biggest mistake” on Apple CEO Tim Cook’s part.

Talking at CNBC’s Squawk Box Europe, Wedbush strategist Daniel Ives called Apple not buying Netflix so far Cook’s a “major mistake” as the iPhone maker’s top executive. Ives mentioned that for Apple to jump-start its business, a renewed interest in content is critical and that’s where Netflix could have factored in.

Ives said that they need content, they need fuel in that engine.

His comments are the latest in a string of predictions from analysts and other industry watchers that Apple would at least consider a Netflix buyout. The reason that Apple’s Services business, which includes content distributions, app sales, and streaming content, is growing rapidly. Moreover buying a big company like Netflix and having access to those streaming subscribers could be beneficial for Apple. Adding with a quarter-trillion dollars in cash, Apple has the liquidity to buy Netflix.

But under Cook, Apple has been loathed to make big acquisitions. Instead of it, the company has made small acquisitions to boost features in its existing products and services. And at least so far, Cook hasn’t signalled that that strategy will change.

For Ives, however, the roadmap for Apple is clear. Daniel believes Apple needs more content and should make a big acquisition to get it. And he’s not convinced Netflix is off the table. Ives said in the interview that they’re lacking original content and lacking video content, which is why there is a belief that they’ll buy a large film studio in 2019.

However, Apple did not immediately respond to a Fortune request for comment on Ives’ comments.

Apple is already poised to unveil its video streaming service sometime in April of late May, according to CNBC. The company is in the process of adding the final touch to the service, which will make the streamable content from online platforms available inside a single app. However, Apple’s streaming service may not feature Netflix and Hulu content whereas HBO’s participation seems dicey, as per the report. A Variety report, later, said Apple could be looking to get these players onboard before the launch, which could happen in the summer or autumn.

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