Morgan Stanley Predicts Apple TV+ Could Be a $9 Billion Business by 2025

Apple's services business is set to grow by 20 percent next year, boosted by its forthcoming Apple TV+ streaming service, according to the latest predictions by Morgan Stanley analyst Katy Huberty (via CNBC).

apple tv plus promo image
In a new investor note, Huberty predicts that ‌Apple TV+‌ will grow into a $9 billion business by 2025, despite increasing competition in the streaming market and even if only 1 in every 10 Apple user subscribes to the service:

"With an attractive price point at $4.99/month, and wide initial distribution to the Apple installed base via the bundled free year offer, we estimate Apple TV+ can become a $9B revenue business with 136M paid subscribers by FY25, assuming just 1 in every 10 Apple user pays for the Service by FY25."

Huberty also notes that for ‌Apple TV+‌ to have a more material impact on its near term estimates, Morgan Stanley would have to assume: "1) ‌Apple TV+‌ production costs are significantly higher at the launch of the Service, and/or 2) more users redeem the Apple 12 month free offer with the purchase of a device."

Launching on November 1, ‌Apple TV+‌ costs $4.99 per month and will be available on the Apple TV app on iPhone, iPad, ‌Apple TV‌, iPod touch, Mac and other platforms, including online via www.tv.apple.com. Customers who purchase any new ‌iPhone‌, ‌iPad‌, ‌Apple TV‌, Mac or iPod touch starting September 10, 2019, are eligible for one year of ‌Apple TV+‌ for free.

Morgan Stanley also raised its target price for Apple stock from $247 to $289. That works out as a 17 percent increase based on its outlook for ‌Apple TV+‌, as well as its prediction that sales will return "to growth as replacement cycles peak" in 2020 as users upgrade to Apple's 5G-enabled iPhones.

Top Rated Comments

JosephKing Avatar
41 months ago
Morgan Stanley Predicts Apple TV+ Could be a $9 Billion Business by 2025

or it could be a $100 million business by 2025.



Am I an analyst now?
Score: 9 Votes (Like | Disagree)
Oraichu Avatar
41 months ago
Someone bought apple stocks and hope for a pump lol.
Score: 7 Votes (Like | Disagree)
Mike_Trivisonno Avatar
41 months ago
By 2025 the monthly price will have increased to $29.95.
Score: 7 Votes (Like | Disagree)
johnyslats Avatar
41 months ago
Now I'm no analyst but 136 million users seems incredibly ambitious given the competitive landscape. Apple Music got to 60 million in 4 years, so more than double this in 5/6 seems a stretch quite frankly
Score: 7 Votes (Like | Disagree)
lkrupp Avatar
41 months ago
So like very device or service introduced by Apple the tech blog crowd passes judgement and declares there’s no way for it to succeed... until it does.
Score: 6 Votes (Like | Disagree)
darcyf Avatar
41 months ago

Do we have reviews of their shows yet? My worry is that they're missing out on edgier indie filmmakers that sets the state-of-the-art, in favor of more established filmmakers that may be beyond their prime.

See Fleabag or Pen15 for what I mean.
Apple aren’t into releasing experimental tech. Same philosophy with tv it seems. But it’s early days for the service. And I’m sure Phoebe Wallace Bridger is on their radar now that she’s proven. All in keeping with the tried and tested Apple playbook.
Score: 5 Votes (Like | Disagree)

Popular Stories

applefifthavenue

Man Robbed After Buying 300 iPhones From Apple Fifth Avenue

Tuesday November 29, 2022 11:54 am PST by
An unnamed 27-year-old man who purchased 300 iPhones from Apple Fifth Avenue on Monday morning was robbed shortly after leaving the store, according to 1010Wins Radio in New York. He was carrying 300 iPhone 13s in three bags and walking to his car at 1:45 a.m. when another car pulled up next to him. Two men jumped out and demanded that he hand over the bags. Not wanting to hand over 300...
iOS 16

Apple Releases iOS 16.1.2 With Carrier Improvements and Crash Detection Optimizations

Wednesday November 30, 2022 10:09 am PST by
Apple today released iOS 16.1.2, another minor bug fix update that comes one week after the release of iOS 16.1.1 and three weeks after the launch of iOS 16.1, an update that added support for iCloud Shared Photo Library, Matter, Live Activities, and more. The iOS 16.1.2 update can be downloaded on eligible iPhones over-the-air by going to Settings > General > Software Update. According...
app store awards 2021

Apple Announces 2022 App Store Award Winners, Highlighting Best Apps of the Year

Tuesday November 29, 2022 3:10 am PST by
Apple today announced its 2022 App Store Award winners, highlighting the 16 best apps and games selected by Apple's global App Store editorial team. The top apps were chosen by Apple for their quality, innovative technology, creative design, positive cultural impact, and ability to deliver "exceptional experiences." Apple CEO Tim Cook said: This year's App Store Award winners reimagined...
14 vs 16 inch mbp m2 pro and max feature 1

'M2 Max' Geekbench Scores Leak Online, Revealing Rumored Specs and Performance

Wednesday November 30, 2022 2:39 am PST by
Geekbench scores allegedly for the upcoming "M2 Max" chip have surfaced online, offering a closer look at the performance levels and specific details of the forthcoming Apple silicon processor. The Geekbench results, first spotted on Twitter, are for a Mac configuration of with the M2 Max chip, a 12-core CPU, and 96GB of memory. The Mac listed has an identifier "Mac14,6," which could be...
eufy camera

Anker's Eufy Cameras Caught Uploading Content to the Cloud Without User Consent [Updated]

Tuesday November 29, 2022 1:01 pm PST by
Anker's popular Eufy-branded security cameras appear to be sending some data to the cloud, even when cloud storage is disabled and local only storage settings are turned on. The information comes from security consultant Paul Moore, who last week published a video outlining the issue. According to Moore, he purchased a Eufy Doorbell Dual, which was meant to be a device that stored video...
Apple Park View

Elon Musk Meets With Apple CEO Tim Cook Amid Claims of Twitter App Store Dispute [Updated]

Wednesday November 30, 2022 12:43 pm PST by
Twitter CEO Elon Musk today met with Apple CEO Tim Cook at the Apple Park campus in Cupertino, California, according to a tweet shared by Musk this afternoon. Musk thanked Cook for taking him around Apple's headquarters, with no mention of what the two might have discussed. The meeting comes just after Musk on Monday claimed that Apple has "mostly stopped" offering ads on Twitter, and that...
iphone 11 tesla cybertruck close up

Elon Musk Pledges to Build iPhone Rival If Apple Ousts Twitter

Tuesday November 29, 2022 2:48 am PST by
Elon Musk has pledged to offer an "alternative phone" if Apple and Google remove Twitter from their app stores, adding to long-standing rumors about an iPhone rival from Tesla. Modified iPhone 11 Pro in the style of the Tesla Cybertruck, by Caviar. Musk's remark came after being asked about the potential scenario of Twitter being removed from app stores, which could conceivably happen if the...
Cyber Monday Deals Feature 2022

Best Cyber Monday Apple Deals Still Available for AirPods, Apple TV, iPad, and More

Monday November 28, 2022 5:24 am PST by
The Black Friday and Cyber Monday holiday shopping rush is drawing to a close, but there are still some good deals to be had out there. For Apple products, many of the deals you've seen since last week are still available, though some have expired. So for anyone who missed out on Black Friday deals, there's still an opportunity to get some of the year's best prices on many Apple devices. Note: ...
apple music replay 2022 highlight reel cropped

Apple Music Replay 2022 Revamped With 'Highlight Reel' [Updated]

Tuesday November 29, 2022 4:02 am PST by
Apple today rolled out an updated Apple Music Replay experience for 2022, showcasing a new "highlight reel" feature. Subscribe to the MacRumors YouTube channel for more videos. The overhauled experience, which started to be noticed by Apple Music subcribers on Twitter earlier today, puts the new highlight reel feature at the forefront of the Replay webpage, which users are encouraged to...
iPhone 14 Pro Rear Camera

iPhone 15 to Use 'State-of-the-Art' Image Sensor From Sony for Better Low-Light Performance

Monday November 28, 2022 11:00 am PST by
Apple's upcoming iPhone 15 models will be equipped with Sony's newest "state of the art" image sensors, according to a report from Nikkei. Compared to standard sensors, Sony's image sensor doubles the saturation signal in each pixel, allowing it to capture more light to cut down on underexposure and overexposure. Nikkei says that it is able to better photograph a person's face even with...