Analyst: Comparing Apple TV+ With Netflix Isn't Fair

Apple Inc. AAPL detailed Tuesday its new streaming video subscription platform called Apple TV+ and it's now clear it's "simply not comparable" to Netflix Inc NFLX, according to Bank of America.

The Analyst

Bank of America analyst Nat Schindler maintains a Buy rating on Netflix's stock with a $450 price target.

The Thesis

Apple TV+ will consist solely of its original shows and will be launched with nine titles, Schindler wrote in a note. By comparison, Netflix boasts more than 400 titles it calls original content, many of which are TV shows which span multiple seasons. Netflix's status as a winner in the streaming video space will likely remain unchanged given its first-mover advantage which generated a "massive lead."

Third-party data from SNL Kagan says there are 3,992 movies and 1,823 series available for streaming on Netflix. As such, Schindler said, Apple's small offering will likely be embraced by consumers as a "nice-to-have" platform. This may change over time if Apple notably expands its content library to better compete with Netflix.

Investors should gain further confidence that there is sufficient room for Netflix to "grow in tandem" with existing and incumbent rivals," according to the analyst.

Price Action

Shares of Netflix traded lower Tuesday and closed at $287.99.

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