Anaylst Morgan Stanley says the service – which hasn’t even been officially announced – will deliver $4 billion in revenue a year by 2025.
The Morgan Stanley report The Emerging Power of Apple Services, Part 3: Video a New Growth Driver in 2019 quotes analyst Katy Huberty as saying Apple Video will become a reality sooner than investors think.
“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 vs. Netflix.
“We forecast that an Apple Video streaming service with high-quality but limited breadth could be priced at the low end vs. competitors, or $7.99/month, and reach over 50 million paid subscribers by 2025, compared to 124 million at Netflix (current paid streaming subs) and Apple’s >650M unit iPhone installed base”.
While Apple frequently quoted as being present at major film and TV markets there has been no clarity from Cupertino on its eventual goal.