Arecent report from Morgan Stanley has estimated that Apple’s forthcoming video-on-demand service will be worth $4.4 billion by 2025. Analyst Katy Huberty remarked:
“W
hile 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 versus Netflix.
We forecast that an Apple video streaming service with high-quality but limited breadth could be priced at the low end versus competitors, or $7.99 month, and reach over 50 million paid subscribers by 2025, compared to 124 million for Netflix (current paid streaming subs) and Apple’s over-650-million-unit iPhone installed base”.
