Wedbush analyst Daniel Ives thinks the MGM deal was a “huge” missed opportunity for Apple and also not picking up a Hollywood studio at all is a “major strategic mistake.” Ives also reiterated his comment about Apple TV+ being a “mansion with hardly any furniture.”
In the past, Ives has called Apple not buying Netflix years ago its “biggest strategic mistake.” While Apple has had some hits like Ted Lasso, some estimates put its streaming service as having just a 3% market share in the US.
As for why Apple may be hesitant to buy a major studio, one CEO thinks the company may be concerned about its shareholders:
With Apple going this long without buying a major studio, it may not change its mind, but The Hollywood Reporter notes that one of the remaining options would be Lionsgate. That would amount to an acquisition around the size of its $3B Beats purchase:
Hal Vogel, CEO of Vogel Capital Management, suggests that Cook is “afraid of shareholder blowback if he goes Hollywood in a big way.”
There is certainly more pressure than ever in the streaming wars to acquire content. Wedbush’s Michael Pachter notes Apple has incentive to bolster its library, but highlights it could opt for smaller buys:
Apple could choose to ramp up its Hollywood division with a mega buy of a studio the size of, say, Lionsgate, which gets mentioned as a possible takeover target given its relative lack of scale — Lionsgate’s market cap is $3.8 billion, while Apple’s is $2.1 trillion — as well as its 17,000-title library and film and TV franchises like Hunger Games, Twilight and its Starz drama Power.
Check out everything available on Apple TV+ in our full guide:
Or it could follow Netflix’s lead and look to snap up smaller Hollywood shingles — like Mark Millar’s comic book company Millarworld — to bulk up its intellectual property ownership.
- Apple TV+ Guide: Here are all the Apple TV shows and movies available now
