A couple of weeks before Apple announces its long-awaited streaming video service, a firm of analysts has suggested that 100M subscriptions could be ‘a realistic medium-term goal’ for the company. This compares to the roughly 150M Netflix subscribers.
Wedbush cautions that the number is predicated on Apple bringing on board major content partners, as well as purchasing content owners, as it would take too long to rely solely on creating original content …
Wedbush says that Apple has a lot of catching up to do with existing players.
Acquisitions are key to rapidly building its subscriber-base, argues the firm.
Wedbush suggests that achieving this goal would add around $15 per share to Apple’s valuation.
While acquisitions have not been in Apple’s core DNA, the clock has struck midnight for Cupertino in our opinion and building content organically is a slow and arduous path, which highlights the clear need for Apple to do larger, strategic M&A (a24, Lionsgate, Sony Pictures, CBS/Viacom, Netflix, MGM) around content over the coming year […]
100 million subs a realistic medium-term goal. If Apple executes with minimal speed bumps and aggressively acquires content given the company’s massive installed base and unmatched brand loyalty we believe reaching 100 million subs in the medium term (3 to 5 years) is a realistic goal that could translate into a $7 billion to $10 billion annual revenue stream over time for Apple and further cement its installed base and halo effect.
The official invitation to Apple’s event on March 25 makes it clear that the streaming video service is the focus, using the tagline ‘It’s show time’ and using a film reel countdown animated graphic.
It also seems likely that Apple will present its subscription-based plans for Apple News – if it has been able to agree to terms with publishers – and we may also get an upgraded Apple TV app.
The March 25 event will be live streamed, and we’ll of course be bringing you full coverage.
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