Apple Music, Gaming may Generate $8.2B by 2025

Apple’s music and gaming revenue could reach $8.2 billion by 2025, analysts from JPMorgan said Monday (June 13).

Reuters reported that figure — a 36% increase — would come from a subscriber base of around 180 million people — 70 million in gaming and 110 million in music. Most of that revenue would come from Apple Music, taking in about $7 billion. The remaining $1.2 billion would come from Apple Arcade, the gaming subscription service launched three years ago.

While Apple does not give a sales breakup for gaming and music services, its overall segment, which includes App Store, Apple TV+, Arcade and Apple Music, reported $19.82 billion in revenue for the March quarter, Reuters said.

Read more: Apple’s Services Push Continues, With 825M Paid Subscriptions in Place

In April, Apple Chief Financial Officer Luca Maestri said during an earnings call that the company was seeing “all-time records” for the App Store, music and video advertising and payment services.

“We now have more than 825 million paid subscriptions across the services on our platform, which is up more than 165 million during the last 12 months alone,” he said.

Apple noted at the time that the installed base of active devices provides a “big engine” for the company’s services business. The level of engagement on the platform is continuing to grow, Maestri and CEO Tim Cook said.

Learn more: Epic Battle Brewing for Control of the Metaverse

Last month, Epic Games CEO Tim Sweeney — who went to court against Apple in 2020 over its app store rules – said he had no intention of letting Apple corner the market on the metaverse.

“I’m terribly afraid the current monopolies will use their power to become the next monopolies on new generations of platforms — and continue to use that power to exclude all competition,” Sweeney said. “If these practices continue on smartphone, they’re not only going to dominate digital commerce and digital goods on smartphones, they’re ultimately going to dominate the metaverse and they’re going to dominate all physical commerce taking place in virtual and augmented reality.”

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