Netflix CEO Ted Sarandos Questions Apple TV’s Strategy

Netflix co-CEO Ted Sarandos has expressed confusion over Apple's approach to its Apple TV+ streaming service. Speaking at a recent media event, Sarandos admitted he doesn't fully understand Apple's strategy but acknowledged the company’s strong financial backing and willingness to invest heavily in content.

"I don't understand it beyond a marketing play, but they're really smart people. Maybe they see something we don’t,” Sarandos told Variety in an interview recently. Apple's deep pockets allow it to operate Apple TV+ without the same financial pressures as other streaming services. Unlike Netflix, which relies entirely on subscriptions for revenue, Apple has a diverse business model where streaming is just a small part of its ecosystem.

Apple TV+ launched in 2019 and has positioned itself as a premium streaming platform with high-quality, original content rather than an extensive library of existing shows and movies. The service has delivered critically acclaimed hits like ‘Ted Lasso’, ‘Severance’, and ‘Killers of the Flower Moon’, but its overall subscriber count remains unclear.

Sarandos' remarks highlight a key difference in strategy between Netflix and Apple TV+. While Netflix prioritizes growing its subscriber base and maximizing engagement, Apple appears more focused on offering prestige content to enhance its brand and ecosystem. This unique approach allows Apple to sustain Apple TV+ without necessarily competing on the same terms as Netflix, Disney+, or Amazon Prime Video.

Despite Sarandos' uncertainty, Apple’s financial strength enables it to fund high-profile projects, attract top-tier talent, and maintain a selective yet influential presence in the streaming market. As the industry evolves, the contrast between Netflix’s aggressive expansion and Apple’s curated content approach will continue to shape the future of digital entertainment.