San Francisco, Jan 1, 2018: Contrary to the reports of Apple launching a video subscription product in 2018 to counter Netflix, analysts from Citi have said that the iPhone maker could possibly buy the entertainment company by taking advantage of US President Donald Trump’s corporate tax cut.
According to Citi analysts, Jim Suva and Asiya Merchant, there is a 40 per cent likelihood that Apple will acquire Netflix. Under the new taxing rules, the tech giant will be able to repatriate about $220 billion in cash to the US.
“The firm has too much cash — nearly $250 billion — growing at $50 billion a year. This is a good problem to have,” Suva and Merchant were quoted as saying.
“Historically, Apple has avoided repatriating cash to the US to avoid high taxation. As such, tax reform may allow Apple to put this cash to use. With over 90 per cent of its cash sitting overseas, a one-time 10 per cent repatriation tax would give Apple $220 billion for mergers and acquisitions (M&A) or buybacks,” they added.
A report in business insider said that iTunes has been a huge hit for the company, but viewers have migrated increasingly to services like Netflix, Amazon or Hulu to watch their favourite shows leaving Apple struggling to offer a compelling TV or movie offering.
In September 2017, reports poured in that Apple might lease the Culver Studios in California as it plans to pour $1 billion into TV and movie productions.
The battle for best movie scripts and television projects intensified between tech giants in the Silicon Valley. Google-owned YouTube is already producing original television series and Amazon has won Oscars for “Manchester by the Sea” show.
The iPhone maker has already hired top Hollywood talent Sony duo Jamie Erlicht and Zack Van Amburg to lead its Hollywood push and is reportedly developing a new TV show that will star Reese Witherspoon and Jennifer Aniston. (IANS)
A disagreement between both the companies fires up their rivalry.
Although Amazon is working fine with Apple TV, The disagreements with Google are not seeming to end.
This rivalry has made Roku, the biggest streaming service in the U.S.A.
The feud between Amazon and Google continues today with the early removal of YouTube from the Fire TV – a move Google had said wouldn’t take place until January 1, 2018. But as a number of Fire TV owners have now noticed, launching the YouTube app today informs you that you can choose to watch “YouTube and millions of other websites” by using a web browser. You then have the option to choose from Amazon’s own Silk browser or Firefox, with a click of a button.
The disagreements between the companies that led to this consumer-unfriendly stance go back several years.
Google hasn’t been happy about Amazon’s anti-competitive nature when it comes to allowing rivals to sell their own hardware items – like smart speakers and media players – on Amazon.com. The retailer has long refused to stock devices that competed with its own – like Apple TV, Chromecast, Google Home, and others – in an effort to promote Amazon products like Echo speakers and Fire TV.
However, Amazon and Apple recently negotiated an agreement that brought the Apple TV back to Amazon and Amazon’s Prime Video app to Apple TV.
Meanwhile, it seemed discussions between Amazon and Google were improving earlier this month when the Chromecast and Chromecast Ultra reappeared on Amazon.com. (They’re still showing as “currently unavailable,” however.)
The other issue at hand was that Amazon had launched its own version of Google’s YouTube player for its Echo Show device, without working with Google to ensure core features were accessible. There’s been quite a bit of back and forth on this matter, with Google pulling that player, only to have Amazon surreptitiously work around the block by implementing a web version of YouTube instead.
That led Google this month to declare that it would pull YouTube entirely from Amazon’s hardware lineup, including Fire TV. The player was yanked immediately from Echo Show, but Fire TV owners were told that the app would work until January 1, 2018.
It would be unusual for Google to actually pull the YouTube app ahead of its deadline, which indicates this change – to point YouTube users to web browsers instead – may have come from Amazon’s side.
That theory is further backed up by the fact that sideloading the YouTube app onto Fire TV will continue to display the “warning” message, according to a report from AFTVNews.com and commenters on Reddit.
However, it’s unclear if Amazon’s choice to redirect YouTube users to web browsers ahead of schedule is fully rolled out. One report from Cord Cutter News said you’ll only see the browser choice screen if you have a browser installed on your Fire TV, for example. (Update: a recompilation of the app’s code, though, indicates the app has been changed to only point to the web browser – no matter if you have one installed or not.)
On two Fire TV devices we have here (a prior generation and new generation player), we’re only seeing the browser choice screen as of today. And many users worldwide are reporting the same, per Twitter.
We’ve reached out to Amazon and Google for comment. Google has not responded, but a rep from Amazon offered the following statement:
“I can confirm that YouTube and millions of other websites are accessible by using a web browser like Firefox or Silk on Fire TV.”
With all this drama, is it any wonder that Roku is the top streaming device in the U.S.?
Consumers don’t want to be jerked around like this all because two competitors can’t work out a reasonable solution that serves both their interests. At the end of the day, Amazon and Google only hurting themselves by alienating their overlapping customer base – a group that easily could (and probably should) switch to Roku at this point. IANS