Apple Video set for 100 million subscribers within 5 years, says analysts
A pair of very enthusiastic market analysts believe that Apple is set for success in its all-in-one video subscription service due to be announced in an event on March 25.
Daniel Ives and Strecker Backe of Wedbush have co-authored an investment note telling clients to get on board that “we (and many others) are finally getting what we hoped for and predicted…”
The company points out content deals in the works from producers and stars like Oprah, Reese Witherspoon, Jennifer Aniston and Steven Spielberg as well as larger publishers like Lionsgate, CBS and Viacom and others.
Wedbush believes that the service could attract 100 million subscribers within 3 to 5 years and bring in up to $10 billion in revenue annually based on a roughly 30 percent cut Apple is expected to take from its fees.
The analysts forecast AAPL share price to rise by about 15 percent over the next year and land on or above $200, barring major changes to competition, a continued slack in iPhone sales and doldrums in the weakening Chinese market. All these factors are seen as demand-side burdens that could affect the company in the long term. And that’s not to say that Apple suppliers won’t jump ship from losing out too much revenue to their distributor.