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Home / Technology / Loup Ventures: Apple (NASDAQ: AAPL) Services Model is Sound Despite Netflix (NASDAQ: NFLX) Exit

Loup Ventures: Apple (NASDAQ: AAPL) Services Model is Sound Despite Netflix (NASDAQ: NFLX) Exit



The news that new Netflix customers can no longer register through the Apple App Store will only result in a fraction of the revenue stroke for Apple Inc. (NASDAQ: AAPL) and does not change the idea that Apple switches to a service business, according to Loup Ventures, the venture capital firm that looks closely at Cupertino.

Netflix confirmed late last week that it will not allow new customers to pay for the streaming service via the app. It's an attempt to get around the "Apple tax", the 30 percent cut Apple takes from managing subscription payments through the app in the first year.

Low Risk of Additional App Store & # 39; Defects & # 39;

Netflix, Inc. (NASDAQ: NFLX) announced in the summer that it was trying to get new subscribers on a website to set up payment, so the move was not a big surprise, said Loups Gene Munster in a Monday requirements.

"The move is a fraction negative to (Apple) earnings, along with a psychological headwind to investors who discuss the topic of Apple as a service," he said.

The only other brand that is probably strong enough to try to require new users to sign up without using the App Store is Spotify, meaning "Apple as a service theme is intact," Munster says.

"We believe the risk of further errors is low," he said. "The value of the App Store for developers is app detection and conversion. Loss of new subscribers due to additional login friction will force most apps to continue offering Subscriptions through the App Store. "

Price Action

Apple traded up 1

.38 percent at $ 158.36 at the time of publication Monday. Netflix was up 5.11 percent at $ 269.16.

Related links:

The Street Vs. Investors: Who Got the Apple Narrative Right?

Indian iPhone Production Supports DA Davidsons Trust in Apple

Photo by Law of Netflix.

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Date Firm Action [19659016] From To
Dec 2018 DA Davidson Repeats Buy Buy 19659024] December 2018 Citigroup Maintains Buy Buy
Dec 2018 Morgan Stanley Maintains Overweight Overweight

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