Apple is rumored to be working on its own video streaming platform where it could see the Cupertino company compete against the likes of Netflix, Hulu, and Amazon, just to name a few. It seems that analysts appear to be quite optimistic about the service, where Morgan Stanley analyst Katy Huberty has predicted that it could earn the company billions.According to Huberty, she predicts that Apple’s rumored streaming service could result in the company earning more than $4 billion by 2025. In a note to her clients, Huberty writes, “We believe that Apple Video will become a reality sooner than investors think … Optionality around Apple Video helps emphasize the increasing contribution to growth from Services.”
Huberty also acknowledges that Apple is not the first to the scene as far as such services are concerned, but believes that they have certain advantages that could lead to their success. “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.”
Apple has yet to officially announce or confirm anything, so it remains to be seen what the actual service will be like, what it could include, how much it will cost, and whether or not it will be worth paying for. In the meantime Apple has been busy shopping for shows and execs were recently spotted at the Toronto International Film Festival where they were apparently shopping for movies.
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