According to J.P.Morgan, Apple Inc’s (AAPL.O) revenue from gaming and music offers is predicted to increase by 36% to $8.2 billion by 2025, as the iPhone manufacturer leverages its massive user base to boost subscription services.
According to JPM analysts lead by Samik Chatterjee, the two services are expected to have a combined subscriber base of roughly 180 million by 2025 – 110 million for music and 70 million for gaming – driven by the rapid penetration of the internet and a thriving gaming industry.
According to the brokerage, Apple Music, which was introduced in 2015 and is the second-largest music-streaming service behind Spotify Technology (SPOT.N), will account for a larger portion of that revenue, bringing in approximately $7 billion by 2025.
Apple Arcade, a gaming subscription service that debuted in 2019, is expected to generate $1.2 billion in revenue. A request for comment from Apple was not immediately returned.
The business does not break down revenues for gaming and music services, but the whole segment, which includes the App Store, Apple TV+, Arcade, and Apple Music, generated $19.82 billion in revenue in the March quarter. The company is regarded as Apple’s growth engine.
Chatterjee, who is granted five stars by Refinitiv Eikon for his Apple estimate accuracy, believes the gaming business will be worth $360 billion by 2028 and music streaming will be worth $55 billion by 2025.