Many of us may have binged on Netflix, but new year brings new possibilities as we are already hearing rumours that Apple might soon be acquiring the video streaming service provider Netflix.
Earlier in 2017, there were reports suggesting that Apple might be launching its own video subscription product in 2018, but on contrary to that, some analysists are now suggesting that Apple might buy off Netflix. The news is causing quite a stir in the streaming industry, because Netflix is essentially ruling the booming industry of video streaming services. Also, the number of cord-cuts after Netflix was introduced, suggests how it is making major influence in the arena of video streaming; that is why many believed that the company is a major player. And it is undeniable that Netflix has invested heavily on original series and has crafted some of the most popular and talked-about television series we know of. It was expected to stay.
However, the analysis by Citi analysts Jim Suva and Asiya Merchant suggest that there is a 40 percent chance that Apple will buyout Netflix. Because, as per the new taxing rules in US, Apple will be able to repatriate about $220 billion in cash to the US. And historically, Apple has avoided repatriating cash to the US to avoid heavy taxation. So Apple’s bid to acquire Netflix depends totally upon its ability to bring in surplus cash from overseas markets back to the US after the Trump tax cut.
Apple is likely to make attempts to buy off Netflix for all good reasons, well actually just one reason – competition. Google already owns the mega video streamer – YouTube, which is already producing original television series and on the other hand, even Amazon has won Oscars for “Manchester by the Sea” show. To add to it, Facebook launched a new original video content streaming feature called ‘Watch’. So that could be another reason of why Apple might actually be considering buying Netflix.