Apple vs. Netflix: Why turf wars are flaring in big tech

Apple is taking on Netflix. Facebook is edging into Amazon’s sphere with its e-commerce plan. And that’s not all.

Apple’s latest move into streaming video illustrates an escalating trend: Tech’s biggest companies, faced with limits to their growth, are encroaching on each other’s turf.

Apple is taking on Netflix. Facebook is edging into Amazon’s sphere with its e-commerce plans. Google, which has already challenged Amazon and Microsoft in cloud computing, is launching an online game service that could undercut the lucrative game-console business at Microsoft and Sony.

Apple, which is also launching a gaming service and introducing its own credit card , may be veering the most outside its comfort zone, technology industry analyst Rob Enderle said.

“This is an awful lot of breadth really quickly for a company that hasn’t been known for being great at breadth,” Enderle said. “This is much more diversity than Apple’s ever had.”

Before, when the company’s product suite grew too varied, “what Steve Jobs did with Apple was, he made the company focus,” Enderle said.

These are different times, however, and Apple may have decided that it doesn’t have much choice amid declining sales of its premier product, the iPhone.

READ MORE: The good, bad and the unknown of Apple’s new services

“They have kind of bled the device market dry,” said Sally Edgar, of UK-based technology consultancy Waterstons. “Companies will increasingly be about subscription services. I think they have to do it to survive.”

Tech companies, of course, have explored new markets and fought turf battles over them for years.

Facebook and Google have long scrapped over digital ads. Google and Amazon are battling it out over voice assistants in the home. Google and Microsoft have competing search engines. And Apple and Google have waged an epic smartphone battle for roughly a decade.

But longtime tech industry analyst Tim Bajarin sees new urgency in the latest push into streaming services and other businesses that bring in continuous flows of money — not just when consumers make big investments in new phones or other hardware.

“It’s just becoming clearer today that the only way a company is going to grow is by adding a recurring revenue model,” Bajarin said. “Apple is becoming an aggregator of content. They now have multiple services that will help them grow their bottom line.”

Enderle said Apple is still in the “honeymoon phase” after a Monday announcement at its Cupertino, California, headquarters. Apple brought out new A-list entertainment partners such as Oprah Winfrey and Steven Spielberg and video game partners such as the creators of “SimCity” and the “Final Fantasy” series. What happens next may be harder for the company to manage.

“It always looks great on the front end and then you have to execute,” he said.

Matt O’Brien, The Associated Press

Like us on Facebook and follow us on Twitter.

Just Posted

People’s Party of Canada plan to have a candidate in the North Island-Powell River riding

Elections Canada formally recognized the North Island—Powell River PPC Association

NVIATS takes over NIEFS space in Thunderbird Mall

“We were approached by NIEFS, they’re going to be downsizing”

Port Hardy Reigns compete in Nanaimo at Island Championships

“We are very fortunate to have this opportunity for our youth in Port Hardy”

Derina Harvey Band – Heartfelt, Energetic, Celtic rock comes to Port Hardy

Front-woman Derina Harvey leads this Celtic-rock act, who offer an authentic east-coast experience.

OPINION: Urgent care room will cost lives

“Seniors, of any demographic, are the most vulnerable to the loss of emergency care.”

VIDEO: Driver in bizarre hit-and-run at B.C. car dealership turns herself in

Police believe alcohol was a factor in incident causing estimated $15,000 in damages

‘B.C. cannot wait for action’: Top doctor urges province to decriminalize illicit drugs

Dr. Bonnie Henry says current approach in ‘war on drugs’ has criminalized and stigmatized drug users

B.C. woman, 76, challenges alcohol-screening laws after failing to give breath sample

Norma McLeod was unable to provide a sample because of her medical conditions

New report on 2017 wildfires calls for better coordination with B.C. First Nations

Tsilhqot’in National Government documents 2017 disaster and lists 33 calls to action

B.C. youth coach banned amid sexual harassment, bullying scandal: Water Polo Canada

Justin Mitchell can’t take part in Water Polo Canada events or clubs

Wilson-Raybould: Feds want to just ‘manage the problem’ of Indigenous Peoples

Former federal justice minister speaks at First Nations Justice Council meeting in B.C.

Female real estate agents warned of suspicious man in Metro Vancouver

The man requests to see homes alone with the female agent, police say

Can you put your phone down for Mother’s Day?

#DiningMode campaign encourages people to leave the phone alone while eating

Horgan heckled as gas prices sit at record high, could go up more

Premier John Horgan blames refiners, not taxes

Most Read