According to Morgan Stanley analysts, Apple's video products are likely to be comparable to the biggest streaming service in the game right away.
Katy Huberty, who is gaining reputation as one of the industry's best Apple analysts, believes that video services will be a driving force for Apple in the coming years. The company's possibilities are so great that Huberty predicts it will be comparable to Netflix in 2025.
In investor letters, Mr. Huberty and his colleagues raised the target price of Apple shares from $ 232 to $ 245. The stock is currently trading at about $ 228 per share.
Apple's growing video empire
The original video content is one of the main reasons Morgan Stanley believes Apple's stock price will continue to rise. By offering a cheaper standalone streaming service than Netflix, Apple could bring additional revenue of billions of dollars annually.
Compared to Netflix (currently paid streaming subsystem) 124M, high quality and limited Apple Video streaming service offers lower prices ($ 7.99 per month) compared to competitors, over 50 M by 2025 by 2025 It is predicted that subscribers will be reached) and Apple's> 650 M unit iPhone-based base, "Huberty wrote." This is because the standalone Apple Video is 4.4 in just six years from CY 19's $ 500 million business It means to grow to a billion dollar business.
Apple plans to spend $ 1 billion on original TV shows and movies this year. The company's growing list boasts the largest name in Hollywood.
Another scenario for Apple's television service is that it can be bundled with Apple Music in one subscription. In that case, Morgan Stanley expects video and music to be $ 22 billion by 2025. This is a combination of Netflix and Spotify.