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Eddy Cue Says Apple Doesn't Want to Compete with Netflix

iPlay Video
July 14, 2016

In an new Q-and-A with The Hollywood Reporter, Apple’s Eddy Cue discusses the company’s plans for the Apple TV, a live streaming TV service, and more.

Not a Netflix Competitor

Not a Netflix Competitor

Most interestingly, Cue said Apple isn’t planning on competing against Netflix with a slate of original TV shows:

We’re not in the business of trying to create TV shows. If we see it being complementary to the things we’re doing at Apple Music or if we see it being something that’s innovative on our platform, we may help them and guide them and make suggestions. But we’re not trying to compete with Netflix or compete with Comcast.

While discussing the future of the Apple TV, Cue noted that he wasn’t a big fan of the so-called “skinny bundle,” like Sling TV, that would give consumers 10 to 20 live channel choices for a lower monthly fee. Apple at one time has been rumored to be creating its own service that would cost $30 to $40 per month.

Most people, at the end of the day, end up paying more, not less, for the things they love. With TV content being at an all-time high, why are people asking for less? It has a lot to do with the way it’s being provided. If I feel like I’m not getting my money’s worth, then I want to pay less and I want less things. But if it were being provided in a rich platform with the capabilities I’m talking about, I don’t think people would feel that way. People pay for Netflix as an add-on to TV, and they’re happy doing it. And why is that? Because they’re happy with what they’re getting from Netflix. So the question to ask about skinny bundles is, why are customers not happy?

Not going to buy a Hollywood studio

Not going to buy a Hollywood studio

And at least according to Cue, don’t expect Apple to buy a Hollywood studio:

That’s the great thing about Apple, it’s very focused on the things that we know how to do very well and not try to extend ourselves to areas that we know very little about or don’t have a lot of expertise in. So when we look at a studio, for example — this was discussed for why didn’t we buy a music label with iTunes — I’m not sure why we should do that. We’re always looking at things that come to us that make us better at things that we want to do or are doing. It’s not that we’ll never do anything, but I’m not sure why [we should] buy a studio. We like the fact that we’re working with all the studios.

The entire interview is definitely worth a read as Cue has been spearheading a number of important initiatives for Apple. Some other topics discussed include Apple Music, the rumored Dr. Dre television series, and more.