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1 Company That Finally Disrupted Apple

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.

You might have seen the amazing studies that show data is growing by an astounding 40% a year. That's largely thanks to the online video revolution Netflix is leading. However, the more profitable play is companies that can take massive amounts of data and analyze them for useful trends. Over the next five years, that might be the highest-growth space in all of IT. To discover one company Fool analysts believe will rule this emerging area of technology, we've created a free report called "The Only Stock You Need to Profit From the NEW Technology Revolution." Inside the report we'll reveal a company that has gone on to gains of more than 200% since first recommended by the Fool. Best of all, it still has room to run. You can click here to access your report -- it's totally free.

Eric Bleeker and Jeremy Phillips have no positions in the stocks mentioned above. The Motley Fool owns shares of Apple and Netflix. Motley Fool newsletter services recommend Apple and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 10, 2012, at 4:17 PM, H3D wrote:

    Hertz rent out more cars than Ford sell. Have hertz disrupted Ford?

    The vast bulk of Netflix ships are subscription service. Tell me they are disrupting Apple when their individual item sales / rentals passes Apples. Or even comes close. Or their gross take for that matter.

  • Report this Comment On June 10, 2012, at 4:45 PM, Fonz56 wrote:

    Recently got notice for opportunity to sell my Verizon stock. I will. I worked for GTE (old Verizon) and found them deceitful, hungry, and distrustful. Even today in Fla they are pushing FIO as 100% to house. Untrue. People bought thinking a full 100% deal, however, part of their system (FIO) still uses copper. A super weak link in service. Filed a complaint with Fla FTC and Verizon now has let up on their claim a little. Verizon needs to rectify earlier charges to unknowing customers.

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