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Last week, Apple's CEO, Tim Cook, introduced its streaming TV service, Apple TV +, which allowed the company to radically change its mindset.
Apple will remain the company that will sell you the iPhone, the iPad and the Mac, but it also wants to turn into a digital services company that charges you for content such as cloud storage, music streaming continuously, news and access to TV shows and movies.
As fewer and fewer people buy a new iPhone on a regular basis, Wall Street is keeping a close eye on the progress of Apple's new media. And the photo is a little mixed.
A Morgan Stanley note sent to customers this week looks at the amount Apple has made through entertainment apps available on the App Store. This category includes apps such as Netflix, Hulu, Amazon Prime, and HBO Go, but does not include streaming music services. This is an important revenue engine for Apple as it can account for up to 30% of subscription fees for these applications.
Read more: Apple has generated $ 156 million through its rival's streaming music service, which is trying to dismantle its app market
And Morgan Stanley found that after years of average quarterly growth of 104%, the situation was slowing down altogether. Revenues from entertainment applications increased only 26% in March. In other words, Apple continues to increase its entertainment revenue, but not so quickly.
Here is the table, where you can see the deposit:
Analysts suggest that it is the Netflix effect, after the streaming service has decided to bypass Apple's billing rules, which means that it has to transfer up to 30% of the subscription fee. Netflix now redirects new iPhone and iPad users to its own site to configure billing rather than via the App Store.
According to the figures provided by Sensor Tower, which also underpin Morgan Stanley's research, Netflix has provided Apple up to $ 256 billion in revenue last year. It was the most profitable application of Apple in all categories. It is therefore logical that his billing changes significantly reduce Apple's entertainment revenue.
The downside for Apple is that entertainment is its second largest category on the App Store, behind the games.
As the bank 's analysts wrote: "Entertainment is a category to watch after a sharp deceleration." Entertainment (which does not include music) is the second largest category of entertainment. App Store. "
They added that the impact is still "relatively small" because they calculated that Apple had lost only about $ 33 million in revenue in March, or 0.09% total revenue from the App Store.
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