Investors loved Disney+, Apple TV+ not so much


  1. Jerry W Doyle said:

    Michael: “… It’s not personal, Sonny. It’s strictly business.” The Godfather

    Apple’s governing board never has acted independently of its CEO. I assume that Bob Iger did not blindside Tim Cook as Eric Schmidt blindsided Steve Jobs. My confidence in Tim Cook is solid.

    Trepidation, though, existed amongst some shareholders March 1 who wanted to ask Tim C to clarify Bob Iger’s role on the governing board when it came to Apple’s evolving video services. We saw, and still see, some potential conflict of interest areas. Is Bob Iger exiting board discussions on video streaming services when they are set on the agenda? Are other board members instructed to abstain from discussing aspects of video streaming services with Mr. Iger? How is this issue being addressed by Tim? I wanted to ask these and similar questions during the shareholders’ meeting, but found it awkward with the good Robert Iger sitting some roles beneath and turning his head each time a shareholder asked questions.

    Apple and Disney essentially are targeting a similar (or in some instances the same) audience for the companies’ respective new streaming video services. It was eye-popping when Disney announced its new Plus video-streaming service at a seemingly “low-balled” subscription fee that precludes Disney from making any money on its streaming service until 2024.

    The video streaming field of competitors is becoming overcrowded. Streaming services (as Disney is doing) are setting themselves up in a competitive race to the bottom to gain subscribers. Only so many eyeballs with limited hours for viewing weekly are able to subscribe to these services. Iger knows this fact. Did he exploit his relationship with Apple?

    To exacerbate matters, in keeping subscribers the streaming service providers must turn out high quality content consistently. That is most difficult and expensive. Is Disney setting us all up for a competitive race to the bottom when it is easy for subscribers to switch between providers?

    There’s no animosity here toward Mr. Iger, if he indeed laid one on us; only deep respect for his business acumen. As Michael Corleone stated in The Godfather Part III: “…Never hate your enemies, it affects your judgement. “

    April 13, 2019
  2. John Konopka said:

    I’m not sure why Disney popped after the announcement. It is clear that Disney has a huge catalog of available content. Apple is a newcomer so maybe caution is in order. On the other hand, AAPL almost always drops after any Apple announcement.

    My feeling as an investor is that Apple doesn’t have to the market leader in this business to be successful. A lot of attention goes to the newest shows, but for a lot of people they just want to watch something moderately interesting or informative while exercising or after dinner or getting ready for bed. If Apple can make it frictionless to watch something on an iOS or macOS device that will eventually attract a large audience. Just like plopping down in a chair and flipping on the TV if you can poop down and ask Siri to play your soaps, crime drama, nature program, Nova, NASA channel or whatever and have it pop up with no more effort that will be great. It will be one more reason to buy an Apple device.

    April 13, 2019
    • Alan Birnbaum said:

      It’s the platform that apple is going for….,

      April 14, 2019
  3. Aaron Belich said:

    Disney popped only because finally there was evidence of something. They kept pushing any hard information back after confirming the rumors two or three quarters back. The stock has barely moved after the last 24 months.

    We still don’t know everything about Apple’s service other than it is going to suck compared to everything else. /s. Netflix and Amazon were both poo pooed when they stated they were working on original content.

    I say wait and see.

    April 13, 2019
  4. Peter Kropf said:

    About Apple TV+:

    It’s been publically announced that all channels’ (HBO, Starz, Japan National, whatever) content will be hosted and directly delivered by Apple’s infrastructure.

    Sounds like TVaaS (TV as a Service). Potentially, the biggest collection of content in the world under 1 curation and delivery system. Here’s Apple’s future tagline:

    “A Billion shows in your TV”

    April 14, 2019

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