“Apple Inc. is rumored to be developing its first automobile, but the iPhone maker might be better off investing in a new streaming video service,” Louis Bedigian writes for Benzinga.
“Cody Willard, chairman of Scutify (a financial social network), told Benzinga about the benefits of disrupting pay-TV,” Bedigian writes. “‘[Apple is] set up to dominate the content subscription businesses of the future,’ said Willard. ‘If you take the market caps and/or revenue of the cable industry, that’s the potential market that Apple’s trying to disrupt — that Netflix is actually successfully starting to disrupt. There’s about a trillion-dollar value that Apple can capture in video. Potentially; they’re not going to get all of it. But if they can get 10 percent of it, it’s $100 billion of market cap valuation, which at this point is a rounding error for the stock.'”
Read more in the full article here.