Apple Music to Reach $7 Billion of Revenues by 2025

© REUTERS Apple (AAPL) Music to Reach $7 Billion of Revenues by 2025 – JPMorgan

By Senad Karaahmetovic

J.P. Morgan analyst Samik Chatterjee has reflected on Apple’s (NASDAQ:) revenue opportunities in the video gaming and music sectors.

The analyst sees Apple Arcade – a video game subscription service offered by the company – contributing $1.2 billion in revenue for the services by 2025.

“We forecast Apple Arcade subscribers to expand rapidly, led by the ramp in popular titles, leading to an estimated 70 mn subscribers by 2025,” Chatterjee told clients in a note.

Similarly, the analyst estimates that Apple Music will continue to maintain its position as the 2nd largest player in the streaming market.

“We estimate the addressable revenue opportunity for steaming revenues will be around $55 bn in 2025, led by a subscriber count of around ~900 mn subscribers. Interestingly, while most music streaming companies continue to see growth, the impact of a wider competitive landscape is starting to moderate growth for the largest incumbent companies, Apple Music included, in recent years at the expense of the most recent entrants,” the analyst added.

Chatterjee sees Apple Music reaching $7 billion of revenue by 2025, fueled by rising penetration, despite moderation in growth.

Apple stock price is down nearly 3% today.

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