The excitement over Apple’s new service has caused the stock to pop
Apple (AAPL) announced some details about its video streaming service yesterday. The excitement over the service, in which the company has already invested a huge amount, has caused Apple’s stock to breach a market cap of $900 billion again.
The stock has gained over 34% since its bottom at the start of this year. Apple has regained the crown of the biggest public company in the world in terms of market cap. As of March 22, it had a market cap of $900.9 billion, slightly ahead of Microsoft (MSFT), which has a market cap of $898.0 billion.
Deloitte says that US subscribers are fatigued due to a myriad of subscriptions
There is still a lot of room for growth in the video streaming market. However, the space is getting increasingly crowded, especially in the US, where the video streaming market may be maturing. As the graph above shows, Netflix’s US subscriber growth is slowing down.
According to Deloitte (cited by USA Today), the average US consumer, who now subscribes to three streaming video services, may be feeling weighed down by too many subscriptions. 47% of viewers surveyed by Deloitte said that they were experiencing subscription fatigue.
However, Apple has a few things going for its video streaming service. First, Apple has an unmatched financial muscle, which means that it can match or better Netflix’s (NFLX) investment on content, which Netflix uses debt to fund. Second, Apple has convinced Hollywood legends like Oprah Winfrey, Steven Spielberg, and Jeniffer Anniston to produce and act for its original content.