“Apple has been developing video content for over a year, with supposed plans to launch its own video-streaming service. For now, Apple has integrated some of its video content with Apple Music, its premium music subscription service, which has over 50 million subscribers,” Adam Levy writes for The Motley Fool. “Apple Music now has more U.S. subscribers than Spotify. Apple’s push into media doesn’t stop with music and video. The company also acquired Texture, a digital magazine subscription service, earlier this year.”
“Apple’s big push into media could result in a business bigger than Spotify and Netflix combined. A bundle of all three services could propel the business to $37 billion in revenue by 2025, according to analysis by Morgan Stanley’s Katy Huberty,” Levy writes. “For reference, analysts estimate that Netflix will generate $15.85 billion in revenue this year and Spotify will bring in $6.11 billion.”
“Apple has an active installed base of 1.3 billion devices,” Levy writes. “While controlling half of the devices in Americans’ pockets can certainly help drive subscriber growth, a bundle will give Apple an extra benefit. Huberty predicts that the bundle option would provide a 64% revenue bump compared to offering stand-alone services only. She expects Apple to offer both stand-alone and bundled options, resulting in revenue between $22 billion and $37 billion in 2025. That’s bigger than Spotify and Netflix combined today.”
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MacDailyNews Take: Once again: We’d really like to see a way to pay for all of the Apple services we choose for one price. Give us a bunch of tick boxes and let us choose our combination of iCloud storage, Apple Music, iTunes Match, etc. and let us pay a single price for all of our choices. — MacDailyNews, October 17, 2016