“Apple Inc.’s latest iteration of Apple TV unveiled last week did not include a streaming service, but analysts at J.P. Morgan are confident one is coming,” Trey Williams reports for MarketWatch. “In a note Monday, J.P. Morgan analyst Rod Hall estimated the tech giant will launch a service priced at $40 a month, a sum he described as conservative given Apple’s potential compared with rival services. ‘We believe Apple could easily charge more or construct channel bundles to end up costing the average consumer more,’ Hall wrote. ‘We believe our estimates are only a ballpark given the myriad possible TV package options and markups that Apple could encounter.'”
“J.P. Morgan’s list includes 27 cable networks such as Viacom Inc.’s, Comedy Central and AMC Networks Inc. The cost per subscriber is $37.85 for all 27 channels. Add on Time Warner Inc.’s HBO Now and the price jumps to $52.84,” Williams reports. “Hall based the list and pricing on Dish Network Corp.’s Sling TV, adding broadcast content he believes people would want to completely cut the cord on their cable service. The 25% markup for Apple is simply an assumption, Hall wrote.”
“Hall is forecasting shipments of the new Apple TV, priced at $149 and $199, to reach 24 million units in 2016, up from the 10 million units this year, and said that would result in a 2.1% upside in per-share earnings,” Williams reports. “But Hall believes that an eventual Apple streaming service would add another 1.3% to earnings.”
Read more, including Hall’s estimated content prices for cable companies vs. Apple, in the full article here.
MacDailyNews Take: As we’ve written before, Apple’s Internet TV service will certainly have to offer ESPN. It will also likely require the “Big Four” networks (ABC, CBS, Fox, NBC) – although it could launch with three out of four and eventually hammer out a deal with whichever one is being the most reticent.
Beyond the Big Four, if you go by ratings (total viewers), the top 20 cable networks are:
7. Fox News
12. Adult Swim
13. Nick at Nite
15. ABC Family
Source: Nielsen estimates, full year 2014
Of course, Apple TV will also need to continue providing access to Netflix, Hulu, etc. and likely start to offer Amazon Prime, etc. for subscribers of those services.
Local media streaming app Plex coming to Apple TV – September 14, 2015
What Apple got right in Apple TV’s user interface – and what needs work – September 11, 2015
New Apple TV has the potential to do for television what iPhone did for mobile phones – September 11, 2015
Apple preps to conquer living room with all-new Apple TV – September 11, 2015
Hands-on with the all-new Apple TV – September 10, 2015
Gruber: Apple TV will define how all TVs will work in a few years – September 10, 2015
Here’s how much RAM is inside Apple’s iPhone 6s/Plus, iPad Pro and new Apple TV – September 10, 2015
New Apple TV sounds great, but where’s the 4K? – September 10, 2015
[Thanks to MacDailyNews Readers “Fred Mertz” and “Bill” for the heads up.]