Is It Really Possible That Apple’s New Streaming Service Could Pull 100 Million Subscribers?
In a couple of weeks, Dow 30 component and tech giant Apple (AAPL) is expected to unveil its plan for its new streaming service that will likely debut in the fall of this year, and Daniel Ives – an analyst from Wedbush Securities – is boldly predicting but without risk that the new platform could draw 100 million subscriptions within three to five years.
The streaming service is a late-comer to an already crowded sector with several competitors jostling for the crown including Netflix (NFLX), Disney (DIS), Amazon (AMZN), Hulu and many more. These companies already have a foothold in the market and for Apple to claw its way in, it would likely need to look at a merger or acquisition that would bring quality content to its service, according to Ives.
“While acquisitions have not been in Apple’s core DNA, the clock has struck midnight for Cupertino in our opinion and building content organically is a slow and arduous path which highlights the clear need for Apple to do larger strategic M&A around content over the coming year,” Daniel Ives noted.
Apple is set to spend nearly $1 billion on content in 2019. If Apple is able to produce a product that lures consumers away from its more established competitors and the streaming service is rolled out without to many hitches, Ives sees it producing a revenue stream of around $7 to $10 billion a year for the company.
All of this must truly be music to the ears of the many shareholders that are long Apple’s stock. Are you or will you be one of them?
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