According to J.P.Morgan, Apple‘s revenue from gaming and music services is estimated to increase by 36% to $8.2 billion by 2025, as the iPhone maker uses its massive user base to boost subscription services.
According to JPM analysts led 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 popularity of the internet and booming gaming industry.
According to the firm, Apple Music, which was founded in 2015 and is the second-largest music-streaming service after Spotify Technology, will account for a larger portion of that revenue, bringing in roughly $7 billion by 2025.
Apple Arcade, a gaming subscription service that debuted in 2019, is expected to generate $1.2 billion in revenue.
The company does not break down revenues for gaming and music services, but the overall segment, which includes the App Store, Apple TV+, Apple 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 rated 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.