“Apple Inc. is taking its time building an original-video operation, but its streaming efforts could become a major contributor to services revenue in just a few year,” Emily Bary writes for MarketWatch.
“Morgan Stanley analyst Katy Huberty raised her price target on Apple shares to $245 from $232 on Wednesday, writing of the company’s opportunities in video and streaming,” Bary writes. “‘We believe that Apple Video will become a reality sooner than investors think,’ she said, and if the company plays its cards right, it could bring in $37 billion in media revenue by 2025.”
“Huberty figures that Apple could take one of two approaches with its video offerings: focus on a standalone video service or combine original content with its music and subscription news products,” Bary writes. “Apple could perhaps offer a standalone video product for $7.99, reasoned Huberty, which is lower than what Netflix Inc. and others charge. But the company seems focused on quality over quantity, meaning that it might not have a huge content library at the start and thus would be ‘more reliant on big hits.’ With a bundled offering, Apple could appeal to more value-oriented customers, those who might currently be considering Hulu and Spotify’s combined $12.99 product. It could offer a video-only option as well.”
Read more in the full article here.
MacDailyNews Take: Apple will have big hits. The strength of the talent, from executives to producers to writers to actors, that they’ve already signed and the projects currently underway is unmatched.
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Yes but they’ll still need plenty of existing media in their library’s as well, like Netflix does. Having only their own shows won’t be enough incentive. More of this stuff though is being hoarded by the original makers for their own streaming services and yet we can’t have 10-15 streaming services out there. Or can we?
Now seven years is a “few”?
“…if the company plays its cards right, it could bring in $37 billion in media revenue by 2025.”
Why muddy the waters in the headline?