'By creating original media content and increasing user stickiness, Apple can differentiate its services from competitors. Apple focuses on quality, not quantity. But original content helps to further differentiate its products and let it pass Bind music and content to get a higher average selling price,' said analyst Amit Daryanani.
Drinari pointed out that Apple’s recent partnership with Oprah Winfrey and Sesame Workshop proves that the company has entered the entertainment industry and challenged the online movie rental service Netflix’s ambitions.
Royal Bank of Canada Capital Markets stated that Apple had a $1 billion budget in 2018 for content acquisition and production. To date, Apple has given Steven Spielberg, Jennifer-Jansnifer. Aniston) and Reese Witherspoon's shooting project invested a large sum of money.
In addition to making movies and TV shows, Apple is still developing its music business.
The Royal Bank of Canada Capital Market estimates that if Apple can maintain its current growth rate of 2 million new users per month, its number of paid users of music services is expected to grow to 100 million in the next three years. Currently, its music paying users The number is about 40 million to 42 million.
The market research firm estimates that Apple Music Services and original content may become Apple's next year's revenue-performing business of $10 billion to $12 billion. This will contribute Apple's earnings per share by 25 cents to 75 cents.