My article last week discussing why Apple (NASDAQ: AAPL) should buy Netflix (NASDAQ: NFLX) caused quite a stir. Aside from eliciting anger from readers, it compelled (among others) TheStreet columnist Rocco Pendola to question my judgment (to put it mildly).
Aside from calling the idea “inane,” Pendola argued:
“There’s no good reason for Apple to get involved in the content game. It’s complicated. It’s expensive. It’s a pain in the butt. And there’s not enough of a payoff, relative to what Apple’s used to, to make all the time and aggravation worthwhile.”
I can offer several reasons why Apple should make this deal for Netflix. But only two reasons matter.
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Reason No. 1: We’ve arrived at the point where consumers no longer need their cable and satellite boxes. This is the main reason Comcast (NYSE: CMCSA) picked off Time Warner Cable (NYSE: TWC). They both need to survive, which was spawned in part by the growing popularity of Netflix.
The way I see it; the only way for Apple to be effective with an iTV is for cable companies to show they are willing to comply with Apple, including giving Apple access to their customers.