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

Sylvan Lake Yettis warned to not get a big head after massive first win

The Yettis won over the Olds Stingers 23-1 at the home opener, April 23

Strathcona County RCMP charge Eckville man for firearms, drugs

RCMP found the suspects at a high risk traffic stop on April 11 as a result of a 911 complaint

Sylvan Lake Town Council approves a 2019 supplementary tax

The Town expects to see roughly $40,000 in revenue from the supplementary tax in 2019.

Alberta’s 47 legislature newbies meet under the dome for orientation day

Most new members are with the United Conservatives, who won a majority government

Annual Home and Lifestyle Show coming to Sylvan Lake

The inaugural event will showcase local businesses at the NexSource Centre’s curling rink on May 11

VIDEO: Police dog in Oregon struck by 200 porcupine quills during pursuit

The German shepherd had to be sedated and was in treatment for more than two hours

Calgary woman killed in B.C. highway crash

Crash closed highway for hours

Assessment says Alberta woman facing animal abuse charges fit to stand trial

April Dawn Irving, 59, is charged with 13 counts of cruelty to animals

Canadian privacy watchdogs find major shortcomings in Facebook probe

The probe followed reports that Facebook had let an outside organization use an app to access users’ personal info

Provinces, Ottawa talk 50/50 split on abandoned bus-route service

B.C. has paid $2 million on a bus service for the northern part of the province

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.

Oil and gas company confirms death of one of its employees in Yoho avalanche

Dana Coffield died when he was skiing in the Rocky Mountains

Cenovus CEO estimates production curtailments will deliver billions to taxpayers

The curtailment program started Jan. 1 was designed to keep 325,000 barrels per day off the market

Robbery in Leduc County estimated at $40,000

Leduc RCMP investigate break and enter and theft of firearms

Most Read