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

RDN to share cost of Parksville’s goose harvest

City asked regional district to pay one-third of $35K expense

Large ‘problematic’ tree removed from Qualicum Beach golf course

Lombardy Poplar tree taken down by town, member upset

Parksville’s Arrowsmith Lodge and Cokely Manor celebrate 50 years

Week of ‘60s-themed activities starts on April 26

UPDATE: Missing kayakers located safe and sound in Welcome Bay

Pair were reported missing April 22, in vicinity of Lasqueti Island

Review: The Magic of ‘Almost, Maine’

ECHO Players production runs through May 5 at the Village Theatre in Qualicum Beach

VIDEO: ‘Alarm bells’ raised by footage allegedly from B.C. pig farm, SPCA says

PETA released video Wednesday showing dead and injured piglets next to nursing piglets

SPCA investigating after newborn kittens found in Vancouver dumpster

The kittens were found suffering from hypothermia and dehydration

‘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

Defence accuses officer of ‘incompetence’ in trial for B.C. man charged with daughters’ murders

Double murder trial for the Victoria father accused of killing his two young daughters continues

B.C.’s largest Vaisakhi festival target of threatening Facebook post: Surrey RCMP

Police say they are investigating the posts on Facebook, after local MLA forwarded screenshots

Murder on B.C. property didn’t need to be disclosed before sale, court rules

Buyer had tried to break contract after learning a man with ties to crime had been murdered there

B.C. man turned to dating site for pimp operation, court hears

In court the details of how Simon Rypiak lured 4 women into prostitution revealed

Tofino beckons Trudeau for quiet Easter vacation

Environmental group hopes latest Pacific Rim vacation inspires change in prime minister

Should B.C. parents receive money if they make sure their kids are vaccinated?

New survey looks at public opinion around government’s role in forcing immunizations

Most Read