“He estimates Apple has 475,000 daily rentals on iTunes… He assumes 90% of the TV shows are rentals, and 75% are movies. Mind you, there’s no exact explanation for those percentages, but there you have it. Out of this, he comes up with an implied $60 million per quarter for Apple rentals,” Ray reports.
Ray reports that Marshall “argues that if Apple can grow iTunes rentals similarly [to Netflix], then ‘it is feasible iTunes annual rental revenue could exceed $1 billion by 2015.’ Marshall has a Buy rating on Apple shares and a $355 price target.”
Full article here.
[Thanks to MacDailyNews Readers “Wayne W.” and “iWill” for the heads up.]