When Disney bought out 21st Century Fox, it didn’t seem that news could get any bigger. But now it seems that there could be another huge shakeup in the entertainment world. Apple could be gearing up to buy Netflix!
Thanks to Donald Trump’s corporate tax cut which was passed in December, Apple will now have a massive influx of funds that were not previously available. The tax cut allows large companies like Apple to bring cash in from overseas without heavy taxation. Apple has 90% of its money, approximately $252 billion, overseas that it can now bring into the American economy. With the tax break, which is only 10%, that would provide Apple with $220 billion. Citi analysts state that there is a 40% chance that the tech company could acquire the streaming giant.
Apple was an early innovator of digital entertainment, offering TV shows and movies via iTunes. Initially, this programming was for purchase only, but eventually Apple offered rentals. But with Netflix and other streaming services growing more rapidly, the appeal of downloading individual episodes of shows or movies has diminished. In August, Apple announced it was spending $1 billion to develop original TV programming. One of the first projects revealed was a collaboration with Steven Spielberg to revive ‘Amazing Stories’. This was followed by an order for a dramedy starring Reese Witherspoon and Jennifer Aniston and a science fiction series from Ronald D. Moore, the creator of ‘Battlestar Galactica’ and ‘Outlander’.
It’s not clear what would happen now. It sounded like Apple was only developing a few high-pedigree projects, while Netflix has a full roster of original hits, like ‘Stranger Things’ and the Marvel Comics shows. The shows that Apple already had in the works would certainly bolster Netflix’s lineup if that’s what Apple chooses to do, but they could also radically alter Netflix and possibly fold them into their existing setup with iTunes.
Check back to find out more as information becomes more available.
Source: Business Insider