Final answer:
Apple's competitive disadvantage in the content streaming industry includes misjudging customer preferences for physical DVDs over streaming and entering a market dominated by established competitors like Netflix, Amazon Prime, and Hulu.
Step-by-step explanation:
One competitive disadvantage that Apple has in the content streaming industry is the underestimation of customers' preferences for physical DVD disks over streaming video content, particularly during the early years when streaming was gaining traction. Despite a substantial increase in Netflix subscribers suggesting a shift towards streaming video, entities like Redbox remained popular due to their convenience and the continued preference for physical DVDs among a considerable segment of consumers. Apple TVS entered a market already crowded with competitors like Netflix, Amazon Prime, and Hulu, each with its unique catalog and established user base, potentially leading to misjudgments regarding consumer preferences and tastes.
Competition in the streaming industry is fierce, with various platforms offering close but not perfect substitutes to one another. This competition can create challenges for Apple TVS as it works to differentiate itself and appeal to consumers who have already adapted to other services. Moreover, Apple entered the streaming landscape later than its competitors, which may have resulted in it facing a steeper uphill battle to capture market share in an industry where early movers like Netflix have already established strong footholds.