Every few weeks some hotshot stock analyst or well inebriated technorati elite pundit makes another prediction about what Apple should, could, or will do with some of that hard-earned billions piling up. How about Apple Buys Disney?
It’s All About Content
The latest version of Apple Buys Disney is a familiar refrain. Apple can afford it. They don’t compete so they need each other.
What will force Apple’s hand to do a cash and stock swap deal to bring Disney under the Apple label? I see four major forces at work here.
Content: If Content Is King then Apple is chasing a content boat that already sailed. And Disney has the world’s richest supply of money-making content. They need each other.
Cloud: The world is moving to the cloud. Streaming music and video, TV shows, movies. The cloud is home to our photos, apps, documents, and social contacts. Disney needs the cloud. Apple is already there with infrastructure, and media devices.
Competition: If Apple doesn’t take content into a new direction, someone else will. Content is a huge egg that doesn’t easily crack. Apple will gain leverage by owning a chunk of the world’s most popular content, and making it available instantly and everywhere on Apple devices.
Confusion: As they say, ‘Divide and Conquer.’ Or, ‘Enemies Make Strange Bedfellows.’ Or, ‘The Enemy of my Enemy is my Friend.’ And, Microsoft’s ever popular dictum, ‘Embrace, Extend, Extinguish.’
Apple needs to break open the oligarchical content industry to get it to move in another, more profitable direction. That will start a content war. Apple buys Disney. Google buys Universal. Microsoft buys Sony.
Don’t laugh. It could happen. After all, Microsoft bought Nokia. Google bought Motorola. Apple bought Beats. Those strategic purchases will look like drops in the bucket compared to what takes place when the major powers realize they need to own a chunk of the content that runs on their respective devices.