Wednesday, December 30, 2015
written by James de Rin in London
Apple will buy Netflix …and here’s why? Apple has been stalled out the gate with their content play, Apple TV package, they abandoned it last month because they could not get the rights to the content they wanted they have left it too late! Tim Cook’ strategy will be to go shopping with the $200 billion he has in cash. Apple will buy Netflix for $50 billion. The algorithm Netflix has created and the deal it has in play and the market mover advantage will kick start Apple TV to form Apple Content. The 60,000,000 Netflix subscribers watch content and tell Netflix by what they click on and for how long and what they watch and when will actually crowd source the data Netflix needs to keep going. To put a crowd sourcing and crowd funding spin on it Apple could fund new content from the 60,000,000 subscribers at $10.00 a month on top of the Netflix existing membership payment, as a standalone investment vehicle to create a Netflix crowd funded studio actually modeled on Disney’s Silver Screen Partners Fund from the 1980s to fund new content that the public have shares in. Imagine not only be a member of Netflix but actually an investor in their content pipeline and get a credit and a return on your investment if they knock it out of the park. Imagine $600,000,000 crowd funded each month for Netflix to create new content for Apple TV. Netflix Studio, Netflix independent, Netflix documentary, Netflix theatre and on and on…In 2016 Netflix will spend $3 billion on new content, imagine Apple owning Netflix letting it run as a standalone but with a crowd funding fund that replenishes every month and is not on the balance sheet of Netflix as debt. Talk about Crowd Source Capital!
Disney will buy Netflix… and here’s why? Because of Bob Iger’ existing relationship with Netflix and his penchant for acquiring content rights so far Pixar, Marvel and now George Lucas it makes total sense to acquire the pipeline for content distribution that leads the world. With ESPN falling off a cliff with traditional cable unbundling like expanding foam why not transition ESPN and content to Netflix make it the pipe of content distribution as traditional dies off. Just imagine all the Star Wars content available one movie at a time on Netflix how many would join just to sign up for each film and remain hooked…As Disney is in the content business why not have the public crowd fund a second tier of content for you and give them risk with reward how exciting would that be…
The Salvation Army charity buys Kickstarter or Indiegogo! Now that Kickstarter and Indigogo are proven business models for rewards crowd funding how about the Salvation Army buying www.Kickstarter.com or www.Indigogo.com with what you say? On January 20th 2004 the Salvation Army received $1.5 billion from Joan Kroc’ wife of McDonald’s founder… she died on October 12th 2003. The $1.5 billion went to building community centers all 35 of them. So the money has been spent, but not leveraged as of yet. However with this model they would have a perpetual income every year. Add www.justgiving.com and they would be a power house in the crowd funding and charity space.
Google Ventures decides to invest further in the crowd sourcing and crowd funding space in crowd and on line funding platforms. They have already invested $17,000,000 on top of $42,000,000 in On Deck Capital which raised $200,000,000 in an IPO in 2014 and before that Google invested $125,000,000 in www.Lendingclub.com which floated the same year. So Google Ventures makes a play for www.fundingcircle.com and www.crowdcube.com I am expecting a call from Google Ventures to my office here at www.crowdsourcecapital.com. Just kidding...Google Ventures targets on line platforms specializing in the provision of debt. (see You Tube Enters into Crowd funding by Zack Miller. YouTube will announce in 2016 a new platform partnership between YouTube and crowd funding. It already owns stakes in Angel List and Circle Up.
That’s all my predictions folks…see you in 2016
Posted by Crowd Source Capital at 6:29 AM