Apple Music and Apple Arcade to Earn $8.2 Billion Annual Revenue by 2025, Says JP Morgan Analyst

Apple's revenue from its music and gaming subscription services is expected to jump 36% to $8.2 billion annually by 2025, according to JP Morgan (via Reuters).

apple music
The U.S. investment bank's analyst Samik Chatterjee on Monday said Apple Music and Apple Arcade are likely to have a combined subscriber base of about 180 million by 2025, with 110 million users paying for the company's music services and 70 million for gaming.

Launched in 2015 and now the second biggest music streaming service after Spotify, ‌Apple Music‌ is expected to account for $7 billion revenue by 2025. ‌Apple Arcade‌, which launched in 2019, is estimated to pull in $1.2 billion.

Apple doesn't break down sales in its Services category, but the company reported $19.82 billion for the March quarter. Apple's Services segment includes the App Store, Apple TV+, Arcade and ‌Apple Music‌.

Top Rated Comments

wanha Avatar
24 months ago
Not to single Apple Music out, but streaming music as a whole is a broken business model.

Yes, most consumers love it and the streaming companies rake in billions, but most artists can't afford even a basic standard of living from their life's work.

For a musician to earn $1 from Apple Music, they need to have 136 streams (for Spotify, this number is 229... embarrassing).

The deal, as it currently stands, is absurdly unfair and one-sided.

Come on Tim, let's fix this
Score: 13 Votes (Like | Disagree)
WiiDSmoker Avatar
24 months ago

70 million subscribers for Apple Arcade? Wow.... I assume 80% of those must be free trials. :p
Or Apple One
Score: 12 Votes (Like | Disagree)
WiiDSmoker Avatar
24 months ago
Maybe they can afford better games then.
Score: 11 Votes (Like | Disagree)
T'hain Esh Kelch Avatar
24 months ago
70 million subscribers for Apple Arcade? Wow.... I assume 80% of those must be free trials. :P
Score: 10 Votes (Like | Disagree)
WiiDSmoker Avatar
24 months ago

Not to single Apple Music out, but streaming music as a whole is a broken business model.

Yes, most consumers love it and the streaming companies rake in billions, but most artists can't afford even a basic standard of living from their life's work.

For a musician to earn $1 from Apple Music, they need to have 136 streams (for Spotify, this number is 229... embarrassing).

The deal, as it currently stands, is absurdly unfair and one-sided.

Come on Tim, let's fix this
Nobody is forcing them to sign to streaming. They, however, aren’t stupid. They know streaming gets them exposure which drives concert sales, merchandise, etc.
Score: 9 Votes (Like | Disagree)
sorgo † Avatar
24 months ago

I don’t think that’s Apple’s fault, if anything Apple is the highest paying service out there.
Actually that would be Tidal.



Attachment Image
Score: 8 Votes (Like | Disagree)

Popular Stories

maxresdefault

Apple Announces 'Let Loose' Event on May 7 Amid Rumors of New iPads

Tuesday April 23, 2024 7:11 am PDT by
Apple has announced it will be holding a special event on Tuesday, May 7 at 7 a.m. Pacific Time (10 a.m. Eastern Time), with a live stream to be available on Apple.com and on YouTube as usual. The event invitation has a tagline of "Let Loose" and shows an artistic render of an Apple Pencil, suggesting that iPads will be a focus of the event. Subscribe to the MacRumors YouTube channel for more ...
Apple Vision Pro Dual Loop Band Orange Feature 2

Apple Cuts Vision Pro Shipments as Demand Falls 'Sharply Beyond Expectations'

Tuesday April 23, 2024 9:44 am PDT by
Apple has dropped the number of Vision Pro units that it plans to ship in 2024, going from an expected 700 to 800k units to just 400k to 450k units, according to Apple analyst Ming-Chi Kuo. Orders have been scaled back before the Vision Pro has launched in markets outside of the United States, which Kuo says is a sign that demand in the U.S. has "fallen sharply beyond expectations." As a...
Apple Silicon AI Optimized Feature Siri

Apple Releases Open Source AI Models That Run On-Device

Wednesday April 24, 2024 3:39 pm PDT by
Apple today released several open source large language models (LLMs) that are designed to run on-device rather than through cloud servers. Called OpenELM (Open-source Efficient Language Models), the LLMs are available on the Hugging Face Hub, a community for sharing AI code. As outlined in a white paper [PDF], there are eight total OpenELM models, four of which were pre-trained using the...
iPad And Calculator App Feature

Apple Finally Plans to Release a Calculator App for iPad Later This Year

Tuesday April 23, 2024 9:08 am PDT by
Apple is finally planning a Calculator app for the iPad, over 14 years after launching the device, according to a source familiar with the matter. iPadOS 18 will include a built-in Calculator app for all iPad models that are compatible with the software update, which is expected to be unveiled during the opening keynote of Apple's annual developers conference WWDC on June 10. AppleInsider...
iOS 17 All New Features Thumb

iOS 17.5 Will Add These New Features to Your iPhone

Sunday April 21, 2024 3:00 am PDT by
The upcoming iOS 17.5 update for the iPhone includes only a few new user-facing features, but hidden code changes reveal some additional possibilities. Below, we have recapped everything new in the iOS 17.5 and iPadOS 17.5 beta so far. Web Distribution Starting with the second beta of iOS 17.5, eligible developers are able to distribute their iOS apps to iPhone users located in the EU...