The following video is part of our "Motley Fool Conversations" series, in which Chief Technology Officer Jeremy Phillips and senior technology analyst Eric Bleeker discuss topics around the investing world.
Disrupting Apple is a challenge few companies are up to, and it's one worth billions in value to the company that can achieve it. One interesting space where Apple has seen its share decrease is online video, where Netflix went from 0.4% of all video delivered in 2010 to more than 40% today. In the same time, Apple lost share equal to Netflix's rise. That shift shows the power of subscription video models. It has also led many to speculate on whether Apple should start its own subscription service or even buy Netflix.
Eric believes both moves would be wrong. Apple's a company that's very "mature" about its disruption. It'll allow itself to be disrupted in areas where it can't be excellent. Especially with the company negotiating for content around a new Apple TV right now, going into subscriptions would make Apple look like more of a threat to many of its would-be partners. Subscription video is powerful, but Apple has more to gain being an excellent platform for subscription businesses rather than building its own service.
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