Apple Music and games will bring in more than $8 billion in revenue by 2025, says JP Morgan

The logo of an Apple store is seen in Washington, U.S., January 27, 2022. REUTERS/Joshua Roberts/File Photo

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June 13 (Reuters) – Apple Inc’s (AAPL.O) revenue from games and music deals is expected to jump 36% to $8.2 billion by 2025, JPMorgan said on Monday, as the iPhone maker is tapping into its huge user base to drive its subscription services.

The two services are expected to have a combined subscriber base of around 180 million by 2025 – 110 million for music and 70 million for games – boosted by the rapid spread of the internet and a booming gaming industry, according to JPM analysts, led by Samik. Chatterjee.

Apple Music, which launched in 2015 and is the second-largest music streaming service after Spotify Technology , is expected to account for a larger chunk of that revenue, bringing in around $7 billion by 2025, said said the brokerage. .

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Apple Arcade, the game subscription service launched in 2019, is expected to bring in $1.2 billion.

Apple did not immediately respond to a request for comment.

The company doesn’t give a breakdown of sales for games and music services, but the overall segment, which includes App Store, Apple TV+, Arcade and Apple Music, saw revenue of $19.82 billion. for the March quarter. The company is seen as Apple’s engine of expansion.

Chatterjee, who is rated five stars for the accuracy of his Apple estimate by Refinitiv Eikon, expects the size of the gaming market to reach $360 billion by 2028 and music streaming to reach $55 billion. dollars by 2025.

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Reporting by Siddarth S and Pushkala Aripaka in Bengaluru; Editing by Anil D’Silva

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