Apple Music, the second-largest music-streaming platform after Spotify across the world, along with Apple Arcade, the video gaming subscription service of Apple Inc, will drive revenue of over $8 billion by 2025, speculates financial services firm JPMorgan.
According to credible sources, revenue from both Apple Arcade and Apple Music is anticipated to rise by 36% to $8.2 billion by 2025.
With the rapid adoption of the internet and the booming gaming industry, the two Apple services are likely to have a common subscriber base of approximately 180 million by 2025 of which 110 million would be for Apple Music and 70 would be million for gaming.
Apple has not provided a sales breakup for music and gaming services, but in the last quarter, it reported revenue of $19.82 billion for the overall segment, which includes Apple Arcade, Apple TV+, App Store, and Apple Music.
While new games are launched on Apple Arcade almost every week, Apple Music usually depends upon iOS updates to see new features.
In the previous year, the company introduced Lossless quality and Dolby Atmos. The company further plans to launch Apple Classic, a music streaming platform for classic music lovers, after acquiring Primephonic in 2021.
The services business of Apple is expected to grow considerably, as potential buyers of new iPhones look forward to recurringly using its subscription services. For instance, Apple is rumored to introducing a new mid-range 6.7-inch model as part of the upcoming iPhone 14 series.
Samik Chatterjee, a senior analyst at JP Morgan who is well recognized for his accurate estimates on Apple by Refinitiv Eikon, forecasts that the gaming-market size to reach $360 billion by the year 2028 and music streaming to hit $55 billion by 2025.