We’re a few weeks out from Apple’s official announcement of it’s much-anticipated streaming television service, and a team of analysts is predicting 100 million subscriptions as a “realistic medium-term goal” for the new service.
The Wedbush firm hedges its bets a bit by cautioning that the prediction is based on a few things happening, like Apple partnering with major content providers and its purchasing content owners, as the numbers wouldn’t be possible relying solely on creating original content.
The analyst firm says Apple has plenty of catching up to do:
The new streaming video content service, which will likely officially launch in the fall, is still in the late planning stages and will include a host of content partners (e.g. HBO remains the biggest X variable) as well as original content from Apple with the company currently in production deals with Oprah, Reese Witherspoon/Jennifer Aniston, Steven Spielberg, and a handful of other projects as the company is spending roughly $1 billion on original content this year. However the company is definitely playing from behind the eight ball in this content arms race with Netflix, Amazon, Disney, Hulu, and AT&T/Time Warner all going after this next consumer frontier investing significantly more dollars ($20 billion combined and counting per annum) on content.
In addition, acquisitions are the key to the service rapidly growing its subscriber base:
100 million subs a realistic medium-term goal. If Apple executes with minimal speed bumps and aggressively acquires content given the company’s massive installed base and unmatched brand loyalty we believe reaching 100 million subs in the medium term (3 to 5 years) is a realistic goal that could translate into a $7 billion to $10 billion annual revenue stream over time for Apple and further cement its installed base and halo effect.
Wedbush argues that by achieving this goal, Apple could add around $15 per share to its valuation.
Apple on Monday sent out invites for their upcoming media event to be held on Monday, March 25 at the Steve Jobs Theater on the Apple Park Campus in Cupertino, California. The event will kickoff at 10:00 a.m. Pacific Time (1:00 p.m. Eastern Time).
The invitations feature the tagline “It’s Show Time,” which jibes with the rumors we’ve seen suggesting the event will focus on services instead of hardware. The event is expected to see Apple premiere their much-rumored streaming television and Apple News subscription services.
Apple’s streaming television service, while expected to be previewed at the shindig, is likely to be launched later this year. Apple has over two dozen original shows in the planning or production stages, including series featuring major stars, such as Jennifer Aniston, Reese Witherspoon, Steve Carell, and Jennifer Garner, to name a few. Many of the stars are expected to make an appearance at the event.
