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

Rollover crash in South Surrey

One person airlifted following incident near 40 Avenue and 160 Street

Surrey council approves modular housing projects for homeless after lengthy hearing

Vote comes after three-hour-long public hearing over supportive housing projects in Whalley, Guildford

Surrey mayor appoints his Safe Surrey Coalition to police transition committee

McCallum dissolved the city’s public safety committee last week in favour of the new committee

Another 250 units proposed for booming block in Clayton neighbourhood

New developments join list of projects popping up near new Salish Secondary, future community centre

PHOTOS: Beach day in White Rock

Summer heat brings locals and tourists to the beach

VIDEO: Young couple found dead in northern B.C. had been shot, police say

Chynna Noelle Deese of the U.S. and Lucas Robertson Fowler of Australia were found along Highway 97

Hazmat incident closes down Lower Mainland street

One person is believed to be dead, police said

VIDEO: Man found dead near B.C. teens’ truck could be linked to a double homicide

RCMP said they are looking for Kam McLeod, 19, and Bryer Schmegelsky, 18, of Port Alberni

Latest plan is to fly trapped fish by helicopter over Big Bar slide

Multi-pronged plan set in motion to freesalmon blocked by landslide in the Fraser River

Family of missing B.C. senior with dementia frustrated with situation, heartened by community support

Nine days since Grace was last seen the question remains: ‘How can an 86-year-old just disappear?’

Unsealed record suggests U.S. man convicted of murdering Vancouver Island couple left DNA on zip tie in 1987

William Talbott is set to be sentenced Wednesday in the murders of Jay Cook and Tanya Van Cuylenborg

Okanagan Air Cadet challenges gender-exclusive haircut policy

Haircut regulation inspires challenge around gender identity

Pride flags stolen from Lower Mainland church

Went missing sometime Friday night, says Maple Ridge reverend

25 new wheelchair-accessible cabins open at Cultus Lake Provincial Park

Maple Bay Campground is now home to 25 new wheelchair friendly cabins, a first for BC Parks

Most Read

l -->