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 reputati as e 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 ctent is e of the main reass Morgan Stanley believes Apple's stock price will ctinue to rise. By offering a cheaper standale streaming service than Netflix, Apple could bring additial revenue of billis 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 mth) compared to competitors, over 50 M by 2025 by 2025 It is predicted that subscribers will be reached) and Apple's> 650 M unit iPhe-based base, "Huberty wrote." This is because the standale Apple Video is 4.4 in just six years from CY 19's $ 500 milli business It means to grow to a billi dollar business.
Apple plans to spend $ 1 billi original TV shows and movies this year. The company's growing list boasts the largest name in Hollywood.
Another scenario for Apple's televisi service is that it can be bundled with Apple Music in e subscripti. In that case, Morgan Stanley expects video and music to be $ 22 billi by 2025. This is a combinati of Netflix and Spotify.