Will Apple buy a movie studio, or studios, in the near future? In the last two months, Disney has nearly doubled its paid Disney+ subscriptions. The service’s recent surge beyond the 50 million mark was “jaw dropping” to Wedbush analysts Daniel Ives and Strecker Backe who have maintained an “Outperform” rating on Apple with a $335 price target.
Elizabeth Balboa for Benzinga:
Apple has an installed base of nearly 925 million iPhones. With that advantage, Wedbush sees an opportunity to secure 100 million streaming subscribers for Apple TV+ before 2024. The company is currently building viewership through promotional one-year subscriptions with device purchases and passive benefits of the pandemic-related stay-at-home orders.
Meanwhile, Disney is drawing in masses organically.
“This is a fork in the road situation for Apple’s streaming endeavors as with Disney firing on all cylinders, Peacock and HBO launching around the corner with impressive content, now is the time for Cook & Co. to attract subscribers although lack of content (no new projects can roll out in light of the pandemic) remains the issue to keep them as a paying sub, with content/studios acquisitions potentially now in the cards for Apple to fill this gaping hole,” Backe and Ives wrote.
MacDailyNews Take: Production of new content is on hold due to the COVID-19 pandemic. If there’s anything Apple TV+ needs, it’s content. Since Apple is prevented from making it, but, as they’re sitting on a pile of cash, they can always buy a movie studio, or studios, for an immediate infusion of content for Apple TV+.