“Amit Daryanani of RBC Capital Markets wrote Monday that a combination of Apple’s original-video efforts and its Apple Music service could lead to between $10 billion and $12 billion in annual revenue three years from now. Music and video could also contribute between 25 cents and 75 cents to the company’s earnings per share, he added,” Bary writes. “Analysts currently project that Apple will post $13.72 a share in earnings in its 2021 fiscal year, according to FactSet.”
“Daryanani’s model assumes that the company is able to amass 100 million or more paying Apple Music subscribers within three years and that the company continues to price the service at $9.99 per month,” Bary writes. “Though Daryanani doesn’t factor in a price increase, he contends that Apple might have the leverage to do so, given that Spotify and Hulu charge $12.99 for a package that includes both music and video.”
Read more in the full article here.
MacDailyNews Take: Why would Apple roll TV and feature-length productions into “Apple Music?” It’d be horribly misnamed, à la iTunes Store itself (which has long sold TV shows and movies and should have been renamed many years ago). So, why not have an “Apple TV” service to go along with “Apple Music” and sell each separately with the option bundle both at a better price? For example, $9.9/mo. each or $14.99/mo. for both?
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]