Apple’s move into streaming TV services has a notable skeptic: Berkshire Hathaway Chairman Warren Buffett.
“I’d love to see them succeed, but that’s a company that can afford a mistake or two,” Buffett said at The Gatehouse’s Hands Up for Success luncheon on Thursday (March 28), according to CNBC. “You don’t want to buy stock in the company that has to do everything right.”
“Apple should do some things that don’t work,” he said, noting that Berkshire owns 5.5 percent of Apple.
Buffett believes the tech giant is taking a risk not only because viewers are limited by how much time they can spend watching content, but there are also several large tech and media companies already vying for dominance in the space.
“You’ve got some very big players who are going to fight over those eyeballs,” Buffett said.
“You have very smart people with lots of resources trying to figure out how to grab another half-hour of your time,” he added. “I would not want to play in that game myself.”
Earlier this week, Apple debuted its new TV streaming service that will feature free original content for device owners, and a subscription platform for existing digital services. Customers will be able to watch content from a variety of sources, all within the iOS TV application.
Other than that, details have been limited. Original programs are in development, and shows from networks like HBO, Showtime and CBS will be offered, while content from Netflix and Amazon will not. Prices have not yet been revealed.
“Ten years from now, when we look at entertainment delivery, it will be what people want. It will be in the form they want,” Buffett said. “It’s going to be a very, very big, hotly contested game, and the one thing I can guarantee is that the public will be the winner.”