Apple TV’s big redesign has been rumored for over a year now, but the long wait might pay off big time, for shareholders at least.
By blowing up the cable industry with its subscription TV streaming service, Apple could add up to $30 billion in global annual revenue to its bottom line, according to projections released by Baird Equity Research.
Pricing for Apple’s service has been rumored around $20 – $40 per month with over 25 channels from the likes of Fox, ABC, CBS and more. Baird Equity notes that if Apple captures just 10% of U.S. broadband households it “could generate $4 billion of annual service revenue, though we suspect the penetration could go much higher, with a significant global opportunity as well.”
On a global scale, Apple could add $30 billion in revenue if they capture 10% of the approximately 90 million broadband households. The research firm found that 46% of consumers survey are looking to cut the cable cord, but only 15% have actually done anything to ditch their monthly cable subscription.
Apple TV’s big update could be the straw that breaks the camels back. Tim Cook dropped the price of Apple TV to $69 last week and announced that HBO Go would be available exclusively on Apple products when it launches in April.
Via: BI