Apple aiming for $50 billion services revenue
Apple (AAPL) appears to be nearing the launch of its long-anticipated video streaming service. The company has invited media to a mysterious event at its headquarters in Cupertino, California, on March 25. Apple is expected to use the March 25 event that it has described as “show time” to unveil its subscription video service that has long been rumored to be coming.
In the digital video subscription business, Apple is staring at a huge revenue opportunity. According to predictions by Grand View Research, the global video streaming market is poised to grow to $124.6 billion by 2025, from $36.6 billion in 2018. Selling video subscriptions is part of Apple’s efforts to grow its services business. The company is aiming to generate around $50 billion in services revenue by 2020. It generated $37 billion in services revenue in fiscal 2018.
Apple wading into hotbed of competition
But it won’t be a cakewalk for Apple in the pursuit of video streaming revenues. The company is entering a market that is already hot with competition. Netflix (NFLX), for instance, has a headstart of several years in the business of selling digital video subscriptions. Netflix exited 2018 with 139.3 million paying subscribers globally.
Walt Disney (DIS) and AT&T (T) are also gearing up to launch new video services in the coming months, adding to the competition. Comcast (CMCSA) is planning to enter the video streaming market next year. Although Comcast is planning an ad-supported video service, it will add to the competition for video consumers’ attention.