Apple’s much-discussed streaming service is expected to generate over $4 billion of sales within its first six years, according to a report from Morgan Stanley.
The firm suggests the yet-to-be-launched SVoD will “become a reality sooner than investors think”.
In a note titled The Emerging Power of Apple Services, Part 3: Video a New Growth Driver in 2019, analyst Katy Huberty wrote: “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.”
She predicted the untitled service can generate sales of $4.4 billion in six years from an estimated $500 million in 2019.
“Apple has the world’s most valuable technology platform with 1.3 billion active devices, and is well positioned to capture more of its users’ time in areas such as video, augmented reality, health, autos and home,” Huberty said.