Apple’s video streaming offer by 2025 with $ 4 billion in sales. The business channel CNBC reports on a forecast by the investment bankers of Morgan Stanley. Analyst Katy Huberty predicts that Apple’s ambition to compete with Netflix would pay off very quickly.
Morgan Stanley’s Katy Huberty says Apple’s share price is currently under-valued. She believes that investors underestimate the potential of Apple’s service business.
Apple’s Video Streaming Can Make a Lot of Money
It foresees instead a bright future for the service business. If Apple wants to establish its own video streaming offer on the market in the next year, based on the model of Netflix, this could already generate half a billion US dollars in sales in the first year.
By 2025, the video streaming business should even be 4 US $ 4 billion in annual sales.
Apple’s customer loyalty an advantage
Another advantage for the iPhone manufacturer from Cupertino is customer loyalty and its “ecosystem”. Even if the offer in comparison should offer less content, but probably some customers would switch to the offer of the smartphone provider. Alone because subscribing, paying and setting up is likely to happen with one click, as with other services.
Netflix Seeking Independence
There was recent evidence that Netflix is dissatisfied with having to hand over money to Apple. That’s why the video streaming provider is testing an alternative payment method that bypasses Apple’s iTunes for a while.
In addition, Netflix is exploring additional revenue opportunities. It is currently testing advertising when switching from one episode to the next.
And Apple? This works behind the scenes on a separate offer. Rumor has it that it will be presented in 2019. The price would be 15 euros per month realistic, 10 euros maybe feasible. Especially in the US, there would be potential, similar to a Prime subscription on Amazon, to make users taste the purchase of a device, including streaming content.