American tech giant Apple (AAPL) is set to hold a special event at the Steve Jobs Theater in Cupertino, California, on March 25. The company is expected to launch its video streaming services and “unveil a subscription service for news outlets” during the event, according to Bloomberg.
Apple TV services versus Netflix
Yesterday, Netflix (NFLX) CEO Reed Hastings put an end to rumors about the inclusion of Netflix on Apple’s upcoming TV streaming service. Hastings said, “We prefer to let our customers watch our content on our service,” and that Netflix has “chosen not to integrate with” Apple’s upcoming video streaming services.
As reported by Reuters, Hastings sees not getting “too distracted” by rising competition from “large, well-funded companies with very significant efforts” as a challenge for Netflix. He added, “They are going to do some great shows. I’m going to be envious. They’re going to come up with some great ideas. We’re going to want to borrow those.”
Stock price movement
Hastings’ confirmation follows experts’ prediction that Netflix may not be included in Apple’s TV service. Investors’ fear of the stiff competition Apple may pose for Netflix could be why Netflix has mostly underperformed the broader market this month while Apple has outperformed it. As of yesterday, Apple had risen 8.6%, whereas the NASDAQ Composite (QQQ) (COMP-INDEX) had risen 2.4% and Netflix had risen 1.5%.