Apple's much-anticipated video-streaming service may be worth more than $4bn by 2025, Morgan Stanley has predicted, up from an estimated $500m in 2019.
Apple has announced it will launch the service sometime next year. It is currently focused on creating content to populate the new site, including shows featuring megastars Oprah Winfrey, Jennifer Aniston, Reese Witherspoon and Steven Spielberg.
"We believe that Apple Video will become a reality sooner than investors think," analyst Katy Huberty stated in a note to clients. "Optionality around Apple Video helps emphasize the increasing contribution to growth from services.
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"While not a first mover, Apple's attractive and sticky customer set combined with low friction sign-up and payment system could drive users to its video platform, even with a less complete content portfolio versus Netflix," she added.
Apple has yet to confirm a pricing structure, but early reports suggest it is expected to be cheaper than Netflix, who's current cheapest plan starts at $11 a month in the US. A more competitive price would inevitably mean Netflix customers switching over the Apple.
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The move shows the iPhone manufacturer's dedication to diversifying its portfolio in the light of reports showing the slowing down of iPhone purchases, particularly in the APAC region.
It also shows its attempts to further compete with Amazon, who was recently predicted to overtake Apple as the largest publicly traded company, despite the fact Apple beat it to become the first company to reach the trillion-dollar mark in August.