At this time, there have been a number of messages related to the content Apple is operating and purchasing for its upcoming Netflix-like streaming service. The iPhone maker has lined up dozens of projects spanning both movies and original series that will see the company working on Oprah Winfrey A-lists to Steven Spielberg, Jennifer Aniston, Reese Witherspoon and Steve Carell to name a few. It is part of Apple's business-wide shift of focus away from hardware sales focus and more to the revenue-generating services that users actually rely on the company's hardware for.
Before a celebrity-studded reveals his new streamer during an event at the company's Steve Jobs Theater on March 25, a Jeffries analyst is out with some important predictions today about the service's finances and potential. Analyst Tim O & # 39; Shea believes Apple will set the price for its Netflix rival of $ 1
Apple's content budget is not close to what Netflix uses from one year to the next. Importance, Apple will be heavily dependent on at least the first on the third-party content it buys. However, many Hollywood studios and networks will not be happy with Apple's 30% revenue decline, and Apple needs as many players as possible to make their streams a success. "There are only a handful of players making content that matters," Business Insider quotes O & # 39; Shea explains. "If you lose one or two of them, your service makes it much less attractive."
According to BI :
Shea estimates that if Apple's video service had 250 million subscribers in 2023, it would still represent only about 5% of the company's revenue that year – and would Don't make up for the falling smartphone. By reference, after offering streaming video for 12 years, Netflix has 139 million subscribers. "It takes a long time for this kind of service to really move the needle," Shea told Business Insider .
Anyway, we should get the first glimpse of what Apple boasts in this event at the March 25 event, which is expected to include a view of clips from some Apple streaming content before actually launching the service later in the summer and possibly on and with the fall. All of this is to say, this is definitely an interesting time right now for companies in the streaming video space as well as for customers who certainly do not lack too much bingeworthy content to consume.