Apple's biggest mistake was not to acquire Netflix, says analyst

Netflix on iPhone X
Netflix on iPhone X (Image credit: iMore)

What you need to know

  • Wedbush analyst Daniel Ives believes Apple's biggest mistake was not buying Netflix.
  • The analyst says Apple must purchase a studio in order to remain competitive.

Apple's biggest mistake of the last decade was not to acquire Netflix, according to Wedbush analyst Dan Ives.

In an interview with Yahoo Finance, Ives says that acquiring the streaming giant years ago would have put the company in a much more advantageous position against rivals like Disney+, Peacock, and Amazon Prime Video.

"The biggest strategic mistake, in my opinion, from Jobs and Cook over the last 10 to 12 years, is not acquiring Netflix a number of years ago," Ives told Yahoo Finance Live, referring to the deceased founder and former CEO, Steve Jobs, and the current CEO, Tim Cook.

While Apple has resisted such a move, Ives believes that the company must purchase a studio in order to compete.

"We've talked about an MGM, a Lionsgate, an A24, otherwise they're going to continue to sort of be on the outside looking in," Ives said. "And that's why I think this is something they're going to be forced into...because it's all about content."

The analyst believes that resisting such a move will continue to make the Apple TV+ library seem small compared to the rest of the streaming services.

"That's the problem when it comes to this arms race we're seeing especially with Disney and of course Netflix at top of the heap," he said.

Apple has seen some success with Apple TV+ so far. Many of its shows and films have been nominated for awards. At the beginning of February, it was revealed that the streaming service received 11 nominations for the 52nd NAACP Image Awards.

Joe Wituschek

Joe Wituschek is a Contributor at iMore. With over ten years in the technology industry, one of them being at Apple, Joe now covers the company for the website. In addition to covering breaking news, Joe also writes editorials and reviews for a range of products. He fell in love with Apple products when he got an iPod nano for Christmas almost twenty years ago. Despite being considered a "heavy" user, he has always preferred the consumer-focused products like the MacBook Air, iPad mini, and iPhone 13 mini. He will fight to the death to keep a mini iPhone in the lineup. In his free time, Joe enjoys video games, movies, photography, running, and basically everything outdoors.